“C” terms are CIF, CFR, CIP, and CPT.
CIF and CFR are used when the shipments are to be moved by ocean transport.
CIP and CPT are used when the shipments are to be moved by any mode of transport.
CFR and CPT both include the cost of the goods, and the transportation cost from the shipper’s door to the named port or airport in the country of destination.
CIF and CIP both include the cost of the goods, the transportation cost, and the cost of the insurance from the shipper’s door to the named port or airport in the country of destination.
All of the C terms allow the US exporter to control the export process and make sure that US Export regulations are met. They allow the exporter to work with the forwarder, trucker and carrier of their choosing. Exporters select vendors that meet their approval and know their company’s policies, concerns and staff. These terms are in the best position to serve the US exporter to manage costs and safeguard the exporter’s interest.
Under the C terms your forwarder files the AES export data on time, complete, and accurately. The exporter avoids the potential violation and the penalty of a $10,000.00 fine. Importers want control for the ISF process. The exporter can be assured that his freight forwarder will not be involved in diverting the cargo to an embargoed country which is in violation of US Export regulations subjecting the exporter to fines and possible suspension of exporting privileges depending on the severity of the violation.
Under the C terms, you get to work with your forwarder (hopefully Benchmark), who wants to take your calls and respond to your email requests quickly, saving you and your colleagues time. Documentation is handled quickly and properly, which is not always the experience you receive from routed forwarders. The forwarder can then select or you can nominate the trucker. They know your shipping people and procedures getting your goods picked up quickly and safely. This avoids potential costly delays for you if the goods are not picked up when ready and staff has to work around cargo that has not been timely picked up. Also please keep in mind that as a US company, if there is an accident or damages in moving the goods to the airport/port that “you” the exporter, the forwarder and the trucker are all potentially liable. This alone should encourage you to work with reputable and capable carriers in all aspects.
In the case of CIF and CIP, both terms include coverage for OPEN MARINE CARGO INSURANCE. Under this coverage, the exporter’s interest and the consignee’s interest are insured. Not carriers liability coverage but All Risks, warehouse to warehouse, including war risks, riots, strikes and civil commotions. The coverage includes far more than just the cost for the loss or damage of the goods. The exporter appears as the shipper/exporter on the bill of lading and is subject to considerable potential risks.
Finally, by quoting and offering your clients the options of CIP; you are providing a value added service and taking direct control of the export process. This puts you in the best position to speed the quotes and the sales transaction cycle. Quoting CIP showing the charges broken out provides your clients with 4 options. If they have their own insurance policy, they can name your firm as “additional insured” and they subtract the cost of insurance and they have your CPT/CFR quote. If they do not like the main carriage option and feel they are better served and you agree, they can subtract and they have your FCA/FOB quote. If they are not informed about the wonders of working with Benchmark and you agree they can handle the shipping process then they have your EXW quote.
Please contact us with your pieces, weight, dimensions, destinations, and values and we will be pleased to provide you with timely and accurate “C” term quotations.