Question

1. If you are a seller, (any mode of transport) and wanted to minimize your cost and risk of transport as much as possible, which incoterm would be most appropriate as the term of sale?
2. If you are a seller and wanted to minimize your payment risk as much as possible, which method of payment would be most appropriate?
3. As a cargo owner, you have several containers of product on a vessel on its way to China. During the voyage, the ship encounters severe storms, and the captain of the ship is forced to abandon 100 containers overboard in order to keep the vessel afloat. Fortunately, none of your containers were thrown overboard. As a result, do you have any liability or financial loss due to this accident?   Why, or why not?

Answer 1

- EXW (ExWorks) is most proper as the term of offer. For a merchant the in co-term "Exwork Factory" is the Inco-term to be utilized to limit its hazard.. Here the merchant obligation is to make merchandise accessible at the area in processing plant and purchaser grabs the products and masterminds the vehicle till the last goal.

- FCA (Free Carrier) is the most significant technique for installment in such manner. The merchant so as to diminish the dangers of installments can pursue different payments technique in the accompanying request

Installment is advance-it is ideal and most plausible for the dealer to take the installment ahead of time structure the purchaser .

Letters of credit - LC is the responsibility by the bank in the interest of the purchaser that the installment will be made by the purchaser in regard t of the merchandise purchased by him.

- Yes, in light of the fact that the holders that were tossed over the edge are protected with the other load. Along these lines, the proprietors of the enduring payload and the proprietor of the vessel must share the expenses of repaying the shippers whose load was ousted