Incoterms Matrices and Troubleshooting

Course Overview

This course covers the practical application of Incoterms in international shipping, focusing on the division of obligations and costs between sellers, buyers, and forwarders. Participants will gain insights into using matrices to map out responsibilities under various trade terms and transportation modes, enabling more accurate quotations. The course emphasizes the forwarder’s role in helping naive shippers or consignees, particularly when preparing international shipping quotes and addressing common operational issues. Topics include handling customs clearance challenges, analyzing shipping quotation patterns, and resolving conflicts related to trade term selection or misunderstandings between sellers and buyers. The course also discusses how forwarders should approach shipping documents, manage “freight collect” situations, and address problems with letters of credit.

Using detailed matrices to increase awareness or the numerous obligations (tasks) and costs in accomplishing transportation and delivery of goods under various shipping circumstances.
Gaining more detailed understanding of respective seller and buyer costs under each trade term using various transportation modes.
Applying what you have learned about respective seller and buyer obligations and costs under various trade terms and transport modes.
Tasks for which forwarders need to understand the division of obligations and costs under each trade term.
The point in an export-import transaction at which a forwarder has the ability to provide the most valuable assistance to a naive shipper or consignee.
Particular information and concerns a forwarder should have when preparing an international shipping quotation.
Why a forwarder should always cite the applicable Incoterm when providing a shipping quotation.
Why preparing a quote to include customs clearance in the destination country is particularly challenging and uncertain.
Why a forwarder should scrutinize the pattern of shipping quotations provided to a particular customer with respect to customer’s success in gaining business.
How the interests of an exporter and/or importer differ from those of a forwarder with respect to shipping quotations.
Problems and conflicts within shipper’s instructions to a forwarder that indicate an ignorant shipper
What a forwarder should do upon identifying operational problems resulting from selection of inappropriate trade terms by seller and buyer
What a forwarder should do when he discovers a misunderstanding between a seller and buyer which impacts his work
Why shipping documents must either explicitly state the applicable trade term or else otherwise leave no doubt as to what it is
What a forwarder should do when terms are FCA but international transportation is not available on a freight collect basis
Solutions when a letter of credit specifies “freight collect” but freight collect service is not available.

Using detailed matrices to clarify obligations, costs, and responsibilities under various trade terms and transport modes for sellers, buyers, and forwarders.
Forwarder responsibilities, including providing accurate shipping quotations, addressing customs clearance challenges, and ensuring clear Incoterm citations in documentation.
Identifying and resolving conflicts or misunderstandings between shippers and consignees, including issues with trade term selection and shipment instructions.
Providing value-added assistance in export-import transactions, especially for inexperienced shippers or consignees, and addressing issues like unavailable freight collect services.
Aligning forwarder actions with customer interests while ensuring operational efficiency and compliance with trade term requirements.