Transportation. It may sound simple, but it is not. Especially in the international scenario. There are many complexities and stages involved. But moreover, there are various types of transportations through different mediums namely: road, air and sea.
Transportation and transit form an important element of the contract of sale and very often the contract of sale involves transit of goods by sea. Although the forms of transit might differ according to different countries, the three commonest forms such contracts are:
- FOB meaning "free on board"
- CIF meaning "Cost Insurance and Freight"
- EXW meaning "Ex Works"
Although all the above-mentioned forms are transits through sea, they differ largely in terms of the nature of the contract, cost involved, the duties of the seller and the buyer. Therefore, in order to decide which type of sea transit system will suit your business the best, make sure you know the features of each of them well.
Here are the key features of each of these transit systems.