MODE OF TRANSPORTATION

LESS - Than Truckload

We understand that not every business functions the same way. We also
understand the difficulty of managing numerous carriers. Our
transportation experts can tailor-fit a shipping program to handle any
shipment size from a package to a pallet. We utilize the resources of our
carriers and leverage our relationships to provide our customers with the
convenience and simplicity of using a single provider.

International
Our global expertise and network of integrated ocean and air carriers
supply our customers with international shipping solutions tailored to their
specific needs and challenges. Our operational offices are solely focused
on the global supply chain. We leverage buying power across a broad
network to give our customers maximum scheduling and routing flexibility
along with a competitive rate.

OTHER SERVICE
To promote a comprehensive supply chain offering to our valued
customers, we take the uniqueness of each shipment into consideration
and utilize a wide variety of specialty services. Our logistics professionals
provide everyday solutions for even the most challenging shipments.

TRUCKLOAD
Mode Transportations truckload services are tailored to fit the individual
needs of each customer from freight analysis to bidding to load
matching. Our standardized processes ensure our carriers get the right
freight for their operation. The end result is more capacity, competitive
pricing and passionate service.

INDUSTRIE
Mode Transportation works with all major consumer and industry groups in
North America. Our strength is in the diversity of our capabilities. We
have expertise in food and beverage including beer, wine and spirits,
industrial, pharmaceutical, manufacturing, automotive, paper, chemical,
energy and retail.
No matter the industry or the commodity, we have the know how to
handle small, medium or large supply chains for both inbound and
outbound freight needs.

DEFINITION
Transportation modes are an essential component of transport systems
since they are the means by which mobility is supported. Geographers
consider a wide range of modes that may be grouped into three broad
categories based on the medium they exploit: land, water and air. Each
mode has its own requirements and features, and is adapted to serve the
specific demands of freight and passenger traffic.

INCORTERM 2011
1) Group 1 : Apply to any mode of transportation

EXW ( EX WORK )
The seller makes the goods available at his premises.The
buyer is responsible for all charges.This trade term places the
greatest responsibility on the buyer and minimum obligations
on the seller. The Ex Works term is often used when making
an initial quotation for the sale of goods without any costs
included. EXW means that a seller has the goods ready for
collection at his premises on the date agreed upon.

FCA ( Free Carrier )

The seller hands over the goods, cleared for export, into the
custody of the first carrier (named by the buyer) at the named
place. This term is suitable for all modes of transport,
including carriage by air, rail, road, and containerised / multimodal sea transport.

CPT (Carriage Paid To)

The general/containerized/multimodal equivalent of CFR. The
seller pays for carriage to the named point of destination, but
risk passes when the goods are handed over to the first carrier

CIP ( Carriage and Insurance Paid To )

The containerized transport/multimodal equivalent of CIF.
Seller pays for carriage and insurance to the named
destination point, but risk passes when the goods are handed
over to the first carrier.

DAT ( Delivered at Terminal )

DAT should now be used wherever DEQ was previously used.

Delivery takes place once the goods have been unloaded at
the named terminal

DAP ( Delivered at Place )

DAP should now be used wherever DAF, DES and DDU were
previously used. Delivery takes place once the seller has left
the good unloaded for the buyer at the named place

DDP ( Delivered Duty Paid )

This term means that the seller pays for all transportation
costs and bears all risk until the goods have been delivered
and pays the duty. Also used interchangeably with the term
"Free Domicile".

2) Group 2 : Apply to sea and island waterway transport only.

FAS ( Free Along Side Ship)

The seller must place the goods alongside the ship at the
named port.The seller must clear the goods for export.
Suitable only for maritime transport only but NOT for
multimodal sea transport in containers

FOB ( Free On Board )

Means that the seller pays for delivery of goods to the vessel
including loading. The seller must also arrange for export
clearance. The buyer pays cost of marine freight
transportation, insurance , unloading and transportation cost
from the arrival port to destination.

CFR (Cost and Freight )

Seller must pay the costs and freight to bring the goods to the
port of destination. However, risk is transferred to the buyer
once the goods have crossed the ship's rail. Maritime
transport only and Insurance for the goods is NOT included.

CIF (Cost, Insurance , Freight )

Exactly the same as CFR except that the seller must in
addition procure and pay for insurance for the buyer. Maritime
transport only. CPT Carriage Paid To (named place of
destination)

Green
Indicates the seller has the responsibility to
provide the service
Blue -

Indicates it is the buyers responsibility

Incoterms
Incoterms is a set of rules which define the responsibilities of
sellers and buyers for the delivery of goods under sales
contracts for domestic and international trade. They are
published by the International Chamber of Commerce (ICC)
and are widely used in international commercial transactions.
The first Incoterms were issued in 1936.Its mean here
incoterms is a contract with buyer and seller. If have a

contract, anything happen when transaction begin, they can

see a contract.
Incoterm into a contract of sale
In view of the changes made to incoterms from time to time,
its is important to ensure that where the parties intend to
incorporate Incoterms into their contract of sale, an express
reference is always made to the current version of Incoterms.
This may easily be overlooked when, for examples reference
has been made to an earlier version is standard contract
forms or in order forms use by merchants. A failure to refer to
the current version may then result in disputes as to whether
the parties intended to incorporate that version or an earlier
as a part of their contarct. Merchants wishing to use Incoterm
2000 should therefore clearly specify that their contract is
governed by Incoterms 2000.

The seller delivery obligation

Incoterms focus on the sellers delivery obligation. The precise
distribution of functions and costs in connection with the
sellers delivery of the goods would normally not cause
problem where the parties have a continuing commercial
relationship. They would then establish a practise between
themselves that is course of dealing which they would follow
in subsequent dealings in the same manner as they have
done earlier. However, if a new commercial relationship is
established or if a contract is made through the medium of
brokers as is common in the sale of commodities.

PASSING OF RISK AND COST RELATING TO THE GOODS

The risk of loss of or damage to the goods, as well as the
obligation to bear the cost relating to the goods, passes from
the seller to the buyer when the seller has fulfilled his
obligation to deliver the goods. Since the buyer should not be
given the possibility to delay the passing of the risk and cost,
all terms stipulate that the passing of risk and cost may occur
even before delivery, if the buyer does not take delivery as
agreed or fails to give such instructions with respect to time
for shipment and or place for delivery as the seller may
require in order to fulfil his obligation to deliver the goods. It is
a requirement for such premature passing of risk and costs
that the goods have been identified as intended for the buyer
or as is stipulated in the terms set aside for buyer.
FUCNTION OF INCOTERM
The effect of incoterm is limited with the scape of the rights
and obligations of the buyer and seller respect with the
delivery of goods sold which are only tangible assets, because
the services do not enter in this classification.
According with all aspect raised by the International Chamber
of Commerce, the major function performed by the Incoterms.
These terms define in particular which is the transfer of cost
and expenses, the transfers of risks and the place where
deliver the goods. All above mentioned mean that the sellers
know exactly and where they should bear the cost and
expenses of delivery that is the buyers know exactly at what
time and in which place, they should bear the risk of losing
goods during the delivery and finally these Incoterms specify
the exact place where the seller must deposit the
merchandise.

CONCLUSION
In conclusion, we can earned the Incoterm in International
Business. The Incoterms has been the need to adapt them to
cotemporary commercial practise. Thus, in the 1980 revision
the term free carrier was introduced in order to deal with the
frequent case where the reception point in Maritim trade was
no longer the tradition FOB point ( passing of the ships rail )
but rather a point on land prior to loading on board a vessel,
where the goods where stowed into a container for
subsequent transport by sea or by different means of
transport in combination also called combined or multimodal
transport.