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By Dominic McGough

INCOTERMS FOR THE PARCEL SHIPPER

As the global parcel market continues to grow, familiarizing yourself with the impact of Incoterms can help you protect both your organization and the customer relationship.

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ncoterms are internationally recognized and used worldwide in both international and domestic contracts for the sale of goods. Incoterms first originated back in 1936, but have been adjusted, added to, subtracted from, and seen increased uptake over the years. Recently, most changes seemed to take place towards the end of a decade; for example, the changes made in 2010 were effective in 2011 and the most recent changes announced this year will be effective in 2020. It would not be surprising if you have not thought about Incoterms before, nor had to take part in a discussion about them, since they are typically used for international movements to (somewhat) standardize communication across what is most likely multiple languages and keep the tasks, responsibilities, and ownership of goods clear for all parties. However, the use of Incoterms domestically is on the rise as more and more shippers realize their benefit and usage in managing their freight movements and identifying exactly when they are responsible for

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the goods. Add in the explosive growth of global commerce that many shippers are experiencing, and you’ll see why Incoterms should be added to your knowledge base as soon as possible. What Incoterms Are Not Before we delve deeper into Incoterms and their usage or importance and why they are now entering the parcel sphere, it is important to note what they are not, to avoid any over-reliance on their use. Incoterms do not constitute a contract in themselves, and they do not supersede the law governing the contract, address currency, credit terms, or price payable. Therefore, Incoterms themselves are not law or a higher power governing the entire buyer-seller relationship. How to Best Leverage Incoterms Incoterms are a tool used to clearly inform the sales contract to define the respective obligations, costs, and risks involved in the delivery of goods from seller to the buyer. Incoterms are also

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PARCEL Fall 2019  

PARCEL Fall 2019

PARCEL Fall 2019  

PARCEL Fall 2019