Question

My company is exporting a batch of goods in CFR terms. What should I do if the vessel run aground during transportation and part of goods suffer losses? What should I do when exporting in CIF terms? Do I need to contact the insurance company to make a claim immediately?​

Answer 1

Answer:

The two are part of a larger group of international trade rules known as Incoterms. These global guidelines for traders were devised by the International Chamber of Commerce (ICC), with the first version published in 1936. Each term refers to an agreement governing the responsibilities of shipping that fall respectively to buyers and sellers in an international trade transaction. This system of agreements aids in an orderly process of international trade by making contract models available that are easy to identify and understand in all languages.