Getting Incoterms wrong can potentially lead to huge losses. They will soon have an updated version too. But don't worry, we did the work for you.If you are a part of the shipping industry, you would know incoterms can be challenging to figure out. Don't worry; we got you covered.What are incoterms? They define the terms of shipping for the cross border trade. They lay out who (the buyer or seller) holds the responsibility in terms of handling transporting and delivery of goods. For either a buyer or a seller, choosing the incorrect Incoterm may affect your cost and freight.<a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 3.png" width="auto" style="width: auto; height: auto;" alt="whatsapp chat"></a>Incoterms or International Commerce Terms, are set by the <a href="https://iccwbo.org/business-solutions/incoterms-rules/" target="_blank" style="color: rgb(28, 30, 41); background-color: transparent;">International Chamber of Commerce (ICC)</a> and revised every 10 Years. The last edition of these rules came out in 2010, and the next one will take effect in January 2020.The incoterms chart (or the list of incoterms) released by the ICC in 2010 consisted of 11 incoterms. While six of them are related to freight shipping, the other five are about transportation modalities. Let's take a look.&nbsp;&nbsp;<ol><li>Ex Works (EXW Incoterms): If working under this term, the seller is only responsible for making goods available at his warehouse or factory. The buyer has the responsibility of getting the shipment from sellers warehouse or factory to the desired location. This Incoterm applies to sea, air and road transportation.</li><li>Cost, Insurance and Freight (CIF Incoterms): The seller is responsible for paying the costs and freight shipping which is necessary to deliver the entire cargo at the destination port. The CIF incoterm also includes the insurance cost, which involves the risk of loss or damage to goods. This particular Incoterm is only applicable to ocean freight.</li><li>Cost and Freight (CFR Incoterm): In this term, the seller is considered to deliver the goods after loading them onto the vessel. The seller must pay costs &amp; freight necessary to bring the goods to the desired port of destination of the buyer. The buyer handles the risk of loss and damage of products and the extra charges that might come in delivery.</li><li>Free on Board (FOB Incoterm): The goods are to be delivered by the seller when the goods are cleared for exports and loaded on the ship. The buyer pays the cost of freight till destination and risk of goods in the vessel.</li><li>Free Carrier (FCA Incoterm): In this case, the seller is responsible for delivering the goods, which are cleared to export to a particular carrier which is nominated by the buyer. Seller is responsible for payment of carriage till the named place by the buyer.</li><li>Delivered at Place (DAP Incoterm): In this Incoterm, the seller pays for carriage to a stipulated location by the buyer, except the costs which are related to import clearance. The seller assumes all risk to the point that the goods are ready to be unloaded by the buyer.</li></ol><a href="https://cogoport.com/signup/en-IN/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-1.png" width="auto" style="width: auto; height: auto;"></a>&nbsp;The new list of Incoterm will take effect from 1st of January 2020. Here is a list of what you need to look out for -&nbsp;<ul><li>Free Carrier (FCA incoterm) might be split into two incoterms one for terrestrial delivery other for maritime transportation</li><li>Delivery Duty Paid (DDP Incoterm) might get divided into two parts. As the customer duty needs to be paid by the exporter, irrespective of the place where he delivers the good. So, the ICC can split DDP incoterm in two, based on whether the delivery is at a terminal or a location designated by the buyer. DTP (Delivery at Terminal Paid) Incoterm and DDP (Delivery at Place Paid) Incoterm might come in this set of incoterms</li><li>CIF and FOB can be used for container shipping.</li><li>A new incoterm, Cost and Insurance (CNI incoterm) might appear in the 2020 chart. This Incoterm is intended to cover the gap between FCA and CIF. The seller will pay the international insurance cost, but the buyer will pay the freight. As an arrival incoterm (due to the first letter 'C'), the risk of transport will be shifted from buyer to seller.</li></ul>&nbsp;Found this helpful? Check out <a href="https://www.cogoport.com/blogs" target="_blank" style="color: rgb(28, 30, 41); background-color: transparent;">Cogoport blogs</a> for more industry 101's.

Incoterms 2020 - What's Changing, What's Staying?

Incoterms 2020: Expected Changes and What Exporters Need to Know

With climate change high on global agenda today, every industry, including shipping, is taking steps to protect the environment. Know how the introduction of IMO Sulphur Regulations 2020, is playing its part.&nbsp;The effects of climate change have been already observable for several years. Effects such as loss of sea-ice, rising sea levels,&nbsp;drought, and intense heat waves are among some of the better know changes we’re seeing.<a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 1.png" width="auto" style="width: auto; height: auto;"></a>It’s a concern for everyone, especially greenhouse gases -including Sulphur Dioxide (SO2)- which are a significant contributor to the atmospheric damage we are experiencing. As well as contributing to global warming and poor air quality, sulphur emissions are responsible for acid rain which impacts agriculture and marine life. And the marine sector is a very significant producer of SO2 emissions.Shipping traditionally used fuels which are high in sulphur levels. With almost 3.8 million barrels of oil consumed per day through various shipping vessels, it doesn't take much calculation to realise how much of the greenhouse gases are actually released into the atmosphere.&nbsp;In order to limit the emissions from ships, the International Maritime Organization (IMO) has taken measures to limit SO2 emissions.Introduction of the International Maritime Organization (IMO) Sulphur Regulations 2020In 2016, the IMO set limits on the sulphur in fuel oil used onboard ships operating outside the&nbsp;designated emission control areas (ECAS), to be reduced to 0.50% m/m (mass by mass). Already there has been a limit of 0.10% m/m already in effect in pre-established emission control areas, which includes the Baltic Sea area; the North Sea area; the coastal areas of the United States and Canada.<a href="https://cogoport.com/signup/en-IN/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-3.png" width="auto" style="width: auto; height: auto;"></a>The regulations take effect in 2020.How will the ships meet these regulations?&nbsp;Most of the responsibility to meet IMO 2020 regulations lies with the carriers, who must ensure that their fleets comply with the rules. They will have three main options:<ol><li>Purchasing cleaner and low-level sulphur fuel:&nbsp;Instead of using High Sulphur Fuel Oils (HSFO), Marine Gas or Diesel Oils (MGO) can be used. However, the cost of MGOs can up to 50% more than the HSFO oils that are already being used.</li><li>Installation of 'Scrubbers':&nbsp;'Scrubbers' or gas cleaning systems can be installed to remove Sulphur Oxides before emission. However, since these scrubbers are made by a limited number of manufacturers around the world. The resulting cost of installation would be around $5 to $10 million.&nbsp;</li><li>Switching to Liquefied Natural Gas (LNG):&nbsp;Ships can switch to using lower sulphur fuels such as LNG, in order to meet regulations. However, fitting the large LNG tanks takes up almost 3% of the vessel's TEU slots, reducing the number of containers a ship can carry. You can also expect a drastic increase in the demand for LNG fuels.</li><li>Slow steaming:&nbsp;Shipping lines may extend&nbsp;'slow steaming', the process of deliberately slowing down the ship's speed to cut the volumes of fuels used from one port to another. However, this naturally extends transit times.</li></ol>Switching to a new fuel to comply with the regulations will add $11 billion in expenses to carriers' balance sheets, according to an article by <a href="https://www.supplychaindive.com/news/imo2020-new-sulfur-rules-could-affect-capacity-drewry/564642/" target="_blank" style="color: rgb(10, 10, 10);">Supply Chain Dive</a>.Seems like an expensive and almost impossible challenge right? But some of the big names in the industry are already making their move. Here's what some of the notable names are doing:Hapag Lloyd's CEO also mentioned that they are expecting their low sulfur fuel costs to be around USD 75-100 million for the IMO2020 implementation date of 1st January 2020. Jörg Erdmann, Senior Director of Hapag Lloyd, said, "We are prepared, as our fleet will operate using compliant fuels by 1st January 2020. In addition, we are testing other options, and Hapag-Lloyd will be the first shipping company to convert a large container ship to climate-friendly liquefied natural gas."MSC estimated that the cost of the various changes that will need to be made to its fuel supply and their fleet is over two billion dollars (USD) per yearCMA CGM&nbsp;will receive its nine 22,000-TEU container ships powered by LNG from 2020. Containerships, a subsidiary of CMA CGM Group, had already started ordering container ships powered by liquefied natural gas (LNG) in 2018.&nbsp;Maersk line recently secured a deal between Maersk Oil Trading and Koole Terminals in Rotterdam, which will provide them with 5-10% of their low sulphur fuel demand. They expect the extra fuel and compliance costs to exceed USD 2 billion.You have your answer. What’s stopping you from going green and doing your part to make a better world?&nbsp;Sign up with <a href="https://www.cogoport.com/" target="_blank" style="color: rgb(17, 85, 204); background-color: transparent;">Cogoport</a> today and get the best shipping rates now!&nbsp;

Alert! Know About IMO Sulphur Regulations 2020!

IMO 2020 Sulphur Regulations: Impact on Shipping Industry & Compliance

Shipping is an integral and critical part of
international trade. The success of international trade transaction is more
often than not dependent on how one manages the entire shipping process.<a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 1.png" width="auto" style="width: auto; height: auto;"></a>



To understand how the international shipping
process works, first, let’s take a look at the main participants in the
procedure:



1. Importer - Importer is the
 buyer. He identifies the need for a product (goods) at a specific
 location, searches for the best supplier - globally, and places an order
 for purchase.



2. 
Exporter - Exporter is the seller. He
manufactures or procures the products required by the buyer. 



3. 
Banks
- Banks play multiple roles in
international trade. They act as financiers, negotiators of the trade contract,
and custodians of the goods/documents.



4. 
Insurance
Company - Insurance is a crucial part of
the shipping process. Insurance companies help cover the risks involved in
transportation.



5. 
Freight
Forwarders - Freight
forwarders are agents who coordinate with the other participants in the
shipping process on behalf of the importer/exporter.



6. 
CHA - Customs House Agents assist the
exporters and importers in getting clearance from custom authorities.

International Container Shipping - Export Process

International Export Process from India: Step-by-Step Guide for Exporters

All India Motor Transport Congress (AIMTC) has called a nationwide truckers strike starting July 20, in an effort to get the government to act on their demands. The strike is supported by more than 93 lakh truckers and around 50 lakh buses, tourist taxi and cab operators that are a part of the association. Other transport federations have also rendered their support to AIMTC. The demands put forth by transporters include a proposal to lower central and state taxes on fuel by including it under GST regime, which would help reduce its price. The transport union is also demanding a reduction in highway tolls and third party insurance premium, exemption in and a toll barrier-free country. The truckers are also pressing the government to end indirect taxes and direct port delivery system, provide exemptions and national permits for all trucks and buses. According to the latest update, all-India loss due to the strike has been estimated at a whopping INR 10,000 crore. While the truckers’ association is adamant about getting their demands met before resuming services, exporters are complaining of loss of orders and business. The strike has already affected cargo movement and if continues it may lead to further delay in transit. As on date, there is no clarity on when the strike will end. Traders are thus advised take the current scenario in consideration and accordingly plan the transit of their shipments.

All India Transport Strike Continues for 6th Consecutive Day

Nationwide Truckers’ Strike: Impact on Indian Logistics and Supply Chain

Please be informed, in its trade advisory dated June 21, Maersk Line has announced that the Line will be levying Extra Seal Charge (ESC) for exports originating from India to worldwide.The details of the charge to be levied is given below. <img src="https://prod-cogoport.s3.ap-south-1.amazonaws.com/7bfed084ab15c8332245048513a6be55/ML%20Customer%20Advisory%20Introduction%20of%20Extra%20Seal%20charge%20%28ESC%29%20-%20India%20to%20World.jpg" alt="Maersk esc advisory"> Source: Maersk Line Trade AdvisoryImage Source: Wikipedia Commons

Maersk Announces Extra Seal Charge from India

ESC and Maersk Line: Partnership for Better Export Solutions

According to a press release dated July
5, 2018, French container shipping giant, CMA CGM is set to overhaul
its Asia-Middle East Services from the end of July 2018. Network optimization and improved service offering have been cited as the reasons for this change.<img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 1.png" alt="website Book now " width="302px" style="width: 302px; height: 44px;">

The press release from CMA CGM is appended below
for your reference and use:

CMA CGM is pleased to announce the reshuffling of its Middle East
services from the end of July 2018.



The Ocean Alliance Day Two
Product will offer in total 4 loops between Far East and Middle East ports with
competitive transit time. CIMEX 1 and CIMEX 3 will be merged into one loop
covering most of ports previously offered. 



The coverage includes the ports in China Mainland/Hong
Kong/Taiwan/Pusan/Southeast Asia and the major callings in Middle East region
such as Jebel Ali, Abu Dhabi, Dammam, Sohar, Hamad, Bahrain, Jubail, etc. 



The New CIMEX 1 rotation
becomes: 

Tianjin - Busan - Qingdao - Shanghai - Shekou - Singapore - Sohar -
Jebel Ali – Hamad – Dammam - Jubail - Singapore - Tianjin &nbsp;<img src="https://prod-cogoport.s3.ap-south-1.amazonaws.com/09887e45a0720e9d89dc713600effb0d/CIMEX%20LOOP%201%20WEB.gif" alt="New CIMEX 1 Service Loop" class="center" width=""> 

 With this reshuffle, CMA CGM will be able to optimize the network and
enhance the reliability of products to our customers. 

Source:&nbsp;CMA CGM

Ocean Alliance – CMA CGM to Reshuffle Routes

CMA CGM Asia-Middle East Service Change: What Shippers Need to Know

The success of your sales efforts, go-to-market strategies, and new product launches is, to a large extent, dependent on how well you&rsquo;ve linked the different touch points of your supply chain &ndash; starting from procuring raw material to delivering the finished product to the right market at the right time.
&nbsp;
Logistics is the backbone of business; local or global. No business can succeed without effective and efficient logistics partners. How you select and manage your logistics service providers will impact the outcome of your carefully crafted business strategies.
More often than not, most companies identify and select logistics partners based on the cost of service projected by the potential service providers. A select few give importance to efficiency and base their vendor selection on this parameter alone.
While both cost and efficiency are important attributes of a logistics partner, neither can be looked at in isolation nor is it enough to base your vendor selection on only these two attributes.
What should one look for in a logistics partner? 
An ideal logistics partner is one who is invested in your organization&rsquo;s success as much as you are. The right partner should, along with optimal pricing and efficient service, also possess the following attributes:
<a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank" rel="noopener"><img style="width: auto; height: auto;" src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 3.png" width="auto"></a>
1. Technology:&nbsp;Supply chain is evolving. It is becoming digital, functionally inter-dependent, and highly complicated. One can no longer expect operational efficiencies by following age-old manual methods or by working in silos. Thus, when choosing a partner to lead your logistics function, it is imperative to bring on board a company that understands the importance of integrating different touch points in the supply chain and functions in a digital environment.
E.g. If you&rsquo;re looking for a transport provider, then check whether they offer multi-modal transport solutions? How do they take bookings? Do they offer a digital platform to book cargo loads? In case of road transport, ask if their carriers are equipped with GPS? For all modes of transport, find out if the company provides real-time cargo tracking?
Similarly, if you&rsquo;re looking for a warehouse partner, check if they have the latest equipment to handle inventory. Find out how they keep stock records. Ask if their system can be integrated with yours?
Another point that you must ascertain is the tech savviness of the team. Specially the team-on-the-ground. Is their team trained to work in a digital environment? Can they adapt to new systems and processes with ease?
If it is an end-to-end logistics management company that you want to partner with, then along with all the above aspects, you also need to understand how they integrate the various logistical functions within their organization and how their technology can be synchronised with your organization&rsquo;s processes and systems.
<a href="https://cogoport.com/signup/en-IN/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank" rel="noopener"><img style="width: auto; height: auto;" src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-1.png" width="auto"></a>
2. Market Acumen:&nbsp;Right from the top management to the team that will handle the day-to-day activities for your organisation, should have an understanding of the industry and the market that you operate in. These insights will help them serve you better, which in turn will benefit your end customers.
3. Business Reach and Scale:&nbsp;Global is the new local. A logistics partner is a key contributor in ensuring that your products reach customers around the globe with minimum effort, on-time and in good (saleable) condition.
Scale of operations is another crucial aspect that you need to consider when partnering with a logistics service provider. Understand their business development plan. Will they be able to service your business growth? Can they manage sudden market-driven demand? If in the event they themselves do not possess the ability to cater to unplanned trade, do they have a network of trusted business partners who can provide the required support?
4. Business Ethics:&nbsp;Assume&nbsp;technology, systems, and processes are in place. The pricing is competitive and the team is stellar. Is this enough to appoint this organization as your business partner?
No. Given the important role that logistics plays in making your business successful, along with the operational efficiencies, you must also conduct due diligence on their work ethics and business practices. This goes beyond the regular credit and KYC checks.
Before signing on the dotted line, seek out the responses to the following questions - are their transactions and dealings transparent? Are they reliable? What is their reputation in the market? How do they treat their resources and manage their team? How do they manage their finances? Do they follow industry best practices? And, in case of transport providers &ndash; are they following the rules laid down for carriers and drivers?
It is necessary to carry out a hygiene check for business partners, because in the long run their reputation and standing in the market will affect yours too.
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5. Responsiveness to Business Needs:&nbsp;Customer service is another key factor that needs to be assessed before partnering with a logistics service provider.
Before you finalise on a vendor, find out if their customer service team is willing&nbsp;to go the extra mile to find the most optimum solutions for your business? Is the team proactive? Can they take ownership of the business process outsourced to them? Can they foresee problems and work on finding the most optimum solutions for your business?
A dedicated customer service team is necessary for ensuring successful management and execution of logistics plans.
Keep these key attributes in mind when you are looking to appoint a logistics partner. It will help you weed out partners that may not be in a position to offer you the logistical support you need to grow your business.
Reliability, transparency, and a dedicated customer success team is the hallmark of Cogoport!&nbsp;<a href="https://cogoport.com/signup">Register Now</a>&nbsp;to know more about how we can help you optimise your import and export logistics.

5 Key Factors for Choosing a Logistics Partner

Key Factors for Logistics Service Providers: How to Excel in Freight Management

Watch Ido Rosenthal, CTO at Prodalim group, talk about the joys and challenges of running a successful international business.Prodalim Group provides optimised solutions to bottling companies across the globe.&nbsp;&nbsp;More simply put,&nbsp;&nbsp;they get top quality fruit juices into the hands of bottling companies, who then make sure that those same juices fill your glass.<a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 2.png" width="auto" style="width: auto; height: auto;"></a>1. What inspired the creation of Prodalim?<iframe class="ql-video" frameborder="0" allowfullscreen="true" src="https://www.youtube.com/embed/vioblQV6OvY?showinfo=0" width="300px" height="150px"></iframe>2. What is your experience of being an entrepreneur?<iframe class="ql-video" frameborder="0" allowfullscreen="true" src="https://www.youtube.com/embed/QYf6tfcjpW4?showinfo=0" width="300px" height="150px"></iframe>3. How do you feel about the industry growing in the era of digitisation?<iframe class="ql-video" frameborder="0" allowfullscreen="true" src="https://www.youtube.com/embed/TAUjCVcSmKM?showinfo=0" width="300px" height="150px"></iframe>4. What are your thoughts on sustainable practices in the industry?<iframe class="ql-video" frameborder="0" allowfullscreen="true" src="https://www.youtube.com/embed/DDWtX2JyYG8?showinfo=0"></iframe>5. Do you face any challenges with importing and exporting your product?<iframe class="ql-video" frameborder="0" allowfullscreen="true" src="https://www.youtube.com/embed/btuxPWLCV-A?showinfo=0"></iframe>6.&nbsp;&nbsp;How do you utilize technology to make your business more efficient?<iframe class="ql-video" frameborder="0" allowfullscreen="true" src="https://www.youtube.com/embed/-ZRpKXbri54?showinfo=0"></iframe>7. What 3 things do you wish you know when you started?<iframe class="ql-video" frameborder="0" allowfullscreen="true" src="https://www.youtube.com/embed/_PvmdpB2QiI?showinfo=0"></iframe>

Cogoport X Prodalim Group Interview

Customer Interview: Prodalim’s Experience with Cogoport’s Shipping Solutions

After holding 2 successful drives for clearing pending GST dues of exporters, CBIC has launched the 3rd edition, from July 16 to 30.The CBIC notification is appended below for your reference and use.<img src="https://prod-cogoport.s3.ap-south-1.amazonaws.com/2cab85f00b556a9f65dd6cf9e90e979c/Press%20Note.jpg" style="letter-spacing: 0.01rem;" alt="CBIC GST Refund Notification" class="center" width="">

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