Frequently Asked Questions

What are Incoterms, and what do they mean?

Incoterms (International Commercial Terms) are standard rules established by the International Chamber of Commerce (ICC). They are used worldwide in international trade agreements to clarify the responsibilities of buyers and sellers regarding the transportation of goods.

Key aspects of Incoterms:

  • Transport costs: Who pays which part of the transport costs?

  • Risk: When and where does the risk of damage or loss transfer from the seller to the buyer?

  • Customs formalities: Who is responsible for arranging customs documents, export duties, and import duties?

Examples of Incoterms:

  • EXW (Ex Works): The seller makes the goods available at their premises; the buyer bears all costs and risks from that point onward.

  • FOB (Free on Board): The seller delivers the goods on board a ship; the buyer bears costs and risks from that moment.

  • DAP (Delivered at Place): The seller delivers the goods to an agreed location; the buyer is responsible for import formalities.

  • CIF (Cost, Insurance, and Freight): The seller pays for transport and insurance up to the destination port, but the risk transfers to the buyer once the goods are loaded onto the ship.

Why are Incoterms important?

They reduce misunderstandings, legal disputes, and ambiguities by clearly defining who is responsible for each stage of the transport process.

The latest version, Incoterms 2020, is often used, but parties must explicitly state which version they apply.

What is an HS code?

HS codes (Harmonized System codes) are international classification numbers used to identify goods for trade and customs formalities. They are managed by the World Customs Organization (WCO) and form the global basis for import tariffs and trade statistics.

Key characteristics of HS codes:

  • Structure: A standard HS code consists of 6 digits. Countries may add extra digits to indicate national or regional specifications.

  • Chapters: The first 2 digits represent the main category of the product.

  • Headings: The next 2 digits provide a further specification within that category.

  • Subheadings: The last 2 digits refine the classification even more.

Applications of HS codes:

  • Determining import duties and taxes

  • Collecting trade statistics

  • Applying trade agreements and enforcing regulations

Advantages:

  • Ensures consistent classification of goods in international trade

  • Prevents misunderstandings and speeds up customs procedures

What types of containers are used in intercontinental sea freight?

In intercontinental shipping, various types of containers are used, each suited to specific kinds of cargo. Here’s an overview of the most common ones:

  • 20GP (Twenty-foot General Purpose) – 1 TEU
    Standard 20-foot container, approx. 33 m³ capacity.
    Internal dimensions: 5.90 x 2.35 x 2.39 meters (L x W x H)

  • 40GP (Forty-foot General Purpose) – 2 TEU
    Twice as long as the 20GP, approx. 67 m³ capacity.
    Internal dimensions: 12.02 x 2.35 x 2.39 meters

  • 40HC (Forty-foot High Cube) – 2 TEU
    Same length as the 40GP but higher, approx. 76 m³ capacity.
    Internal dimensions: 12.02 x 2.35 x 2.69 meters

  • Open Top Container
    Container without a fixed roof, intended for cargo too tall for a standard container. Ideal for machinery or construction parts.

  • Reefer Container
    Insulated, temperature-controlled container that can refrigerate or freeze. Available in both 20- and 40-foot versions.
    Note: Internal dimensions differ from dry containers due to insulation.

  • Flatrack
    Container without sidewalls or a roof, only a floor and end walls. Suitable for oversized cargo such as vehicles, machinery, or steel structures.

What is the difference between FCL and LCL?

In sea freight, there are two common shipping methods depending on the size of your shipment:

  • FCL (Full Container Load):
    You rent an entire container for your own goods, regardless of whether you fill it completely. This is ideal for large shipments and offers advantages such as reduced risk of damage or delay.

  • LCL (Less than Container Load):
    You share the container with shipments from other parties (consolidation). This option is often more economical for smaller volumes, as you only pay for the space you use.

What is the difference between chargeable weight and actual weight?
    • Actual weight:
      The physical weight of the shipment, measured in kilograms.

    • Chargeable weight:
      The weight used to calculate shipping costs. It is the higher of two values: the actual weight or the volumetric weight (calculated based on the shipment’s dimensions).

    For light but bulky shipments, the volumetric weight may be higher than the actual weight — in that case, the volumetric weight is used as the chargeable weight.

What is not allowed to be shipped via air freight?

Not all goods are permitted in air freight. Some products pose a risk to onboard safety and are either prohibited or allowed only under strict conditions.

Examples of prohibited or regulated goods:

  • Explosives and ammunition

  • Flammable liquids and gases (such as gasoline, aerosols)

  • Lithium batteries (especially damaged or large batteries)

  • Corrosive or toxic substances

  • Radioactive materials

  • Strong magnets or devices that can cause interference

Some of these goods may be shipped but only with special packaging, labeling, and documentation according to the IATA Dangerous Goods Regulations (DGR).

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