Incoterms - A must Know in Freight Forwarding

Incoterms

To better understand the above incoterms let me make you aware of the cost involved, so that you can have a better idea.

The main costs involved in freight forwarding is as below:

• Origin charges
• Freight
• Destination charges
• Storage / Demurrage / Detention Charges

Origin Charges: Origin charges comprises of charges incurred at origin i.e exporter's end. These are as below;

• Pick up cost
• Transportation
• BL fee
• Origin Terminal Handling charge (THC)
• Storage/ CFS charge 
• Custom clearance charge
• Picking-packing
• Stuffing & other charges.

Freight Charge: Freight charge is the amount that is payable to carrier from Port to Port services. It doesn't include terminal handling charges. 

Destination Charges: Destination charges comprises of charges incurred at destination i.e importer's end. These are as below;

• Delivery Charges
• Transportation
• Delivery Order Fee
• Destination Terminal Handling charge (THC)
• Storage/ CFS charge 
• Custom clearance charge
• Destuffing & other charges.

Storage / Demurrage / Detention Charge:

In case of LCL (Less than container Load) consignment, storage of goods destuffed from a FCL (Full Container Load) in custom bonded warehouse, ICD, CFS and in case of FCL consignment, storage of container untill it gets cleared by customs.

Demurrage : A free-time of 7 days is allowed to clear out the cargo by consignee(s) from Port premises. Thereafter, demurrage is applicable at the rate of SAR 20/day/gross tonne (including container tare weight), which is charged and collected by the port authorities directly from consignee(s), without any influence and/or involvement of shipping lines/agents.

Detention:A free-time of 7-15 days from the date of vessel arrival is allowed by carrier to the consignees to take full boxes from port premises to their warehouse, devan the cargo and return the empty container(s) to our depot. Thereafter, the detention charges are SAR 50 per TEU per day for dry container(s) and SAR 100 per TEU per day for reefer container(s).

Please find below chart that shows responsibility of importer and exporter.