The information provided here is part of Export Import Training online
Nominated cargo or Routing order shipment
What do Nominated Cargo /routing order mean? Who decides shipping line in a Nominated Shipment? Can a shipper arrange shipping line in a Routing order shipment? What are the circumstances where in buyer appoints a carrier in imports and export trade?
In an export import trade, if the terms of delivery are on ex-works basis, the carrier of goods is decided by overseas buyer. He nominates a carrier to pick up goods from supplier’s factory and arranges to get the goods at his place.
The carrier can be a freight forwarder, consolidator or any other transport operator. Once after shipment is ready at buyer’s supplier’s premises, the supplier informs buyer accordingly. The overseas buyer appoints a carrier to move goods from the seller’s premises to his location.
In a shipment where in terms of delivery is on FOB basis, the shipping carrier from port of loading to final destination is decided by the buyer – Importer.
If the terms of delivery are on DDU, DAP or DDP basis, the exporter who supplies goods decides a carrier to deliver goods to consignee’s premise. Since the terms are DDU, DAP or DDP, the responsibility to pay the costs of delivery of consignment up to the door of consignee is vested with the Shipper who supplies goods. So the seller of goods nominates a carrier at final destination to deliver cargo to consignee’s premises with his own cost.
Who pays freight and other charges in a routed shipment / Nominated shipment? If the terms of delivery is DDU or DDP basis, the freight and other charges up to the door of consignee is paid by the supplier. If the terms of delivery are on ex-works basis, the freight and other charges have to be borne by the consignee.
In an ex-works shipment, the consignee/importer decides shipping carrier where as in DDU or DDP shipments, the Shipper / Exporter decides shipping carrier of goods. Also read Who decides shipping carrier on FOB shipments
Detailed articles about Inco Terms of Delivery under export and import of International business have been mentioned in separate category – INCO TERMS – in this web site. You can click here to read.
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(A special thanks to Bruce Wayne who corrected an error in this article above)
The above information is a part of Import Export online Training
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