On Carriage under Delivery of goods, easily explained

Cost of On Carriage under International Trade


Here we can discuss about On Carriage.

The On Carriage means, the process of movement of goods from discharge port of buyer to final destination place of buyer.  The final destination place could be Importer’s premises, his factory or the place of final destination where the buyer and seller agreed and mentioned in Sale Contract.

Once the goods reached at discharge port in buyer’s country, the goods are moved either by truck, rail or any other modes of transport to the final destination place mentioned in the sale contract.  So, the stages between the discharge port of importer’s country to final destination mentioned can be called as Main Carriage.  The buyer and seller mutually agree the terms and conditions on delivery terms and undertake the costs and risks of ON CARRIAGE as per their Sale Contract.     For example, if the buyer and seller contracted the terms of delivery as Ex Works under Inco Terms, the costs of  on carriage to  be taken care by the importer.  If the terms are agreed as DDP, the on carriage cost is absorbed by the Seller.  The buyer and seller agree up on the risks and costs sharing parties each other and specifically mentions in the sale contract to avoid further problems and disputes on the shipment delivery.


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So under the terms ON CARRIAGE, the movement of goods from discharge port at buyer’s country to the final destination place of buyer mentioned in the sale contract is defined.

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