Billing Methods in Shipping
By Manan Kumar
Some of the important terms regarding shipment and billing methods involved in it are described over here. The most common trading terms used in shipment of commodities used worldwide are :-
1. Freight on Board or free on Board also know as F&B - This means that exporter delivers the goods or commodities at his own expense at location specified.
2. Cost and Freight, commonly known as C&F, CFR, and CNF - In this case exporter pays the ocean shipping and air freight to the specified location. Many of major shipping carriers offer guarantee on their delivery time i.e. if the packages are not delivered on time then customer will be entitled to a refund.
3. Cost Insurance and Freight or CIF - Insurance and Freight are all paid by the exporter to the specified location.
Regardless of the many variables in shipped commodities and locations, there are simply three basic types of shipments: land, air, and sea. Shipping is physical procedure of transporting commodities and consignment. Almost every manufactured good ever made, bought, or sold has been affected by shipping.
On comparing these shipment procedures i.e. shipment through land or ground with air and sea, each type of shipment has its own uses and drawbacks. Shipment through sea is normally done though trucking which actually the most popular form of shipping. Still in air and water shipments, ground shipment is still be used to take the commodity from its source to the airport or seaport and then to its destination and Trucks is also much faster than ships and rail transport but slower than air planes.
But actual shipping is done through Sea. An individual nation's fleet is called merchant navy and is fundamental to the world economy because of hauling the bulk of international trade.
For more on Freight Forwarding visit us at our website related to Marine insurance
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