University Paris IX Dauphine

Anglais

Index:
1. Introduction.
2. Shipping Vs. Transport.
3. Logistic.
4. Incoterms.
5. Tax & duties customs.
6. Insurance.
7. International Shipping

SHIPPING

University Paris IX Dauphine

Anglais

SHIPPING

Introduction:
What is shipping?

Shipping is the physical process of transporting

commodities and merchandise goods from one place to
another place. The Anglophone take this words to refer
to every way to transport thing to one point for
another. (link), In other languages usually have
different specific word for each way to transport.

University Paris IX Dauphine

Anglais

SHIPPING

hipping Vs. Transport

What is the difference between each
When the Anglophone feel the need to transport their
one?
goods, the do not have good roads, or good train rail
way. For that reason they usually rely on the boats to
transport the goods from one place to another. They
developed a good canals system on the country to
spend less time doing it.
One can known that the word transport have a
military notation and they want to borrow it from the
vocabulary for it reason.
Nowadays, you can use this word to mean for land or
ground shipping, by trucks, train and planes.

University Paris IX Dauphine

Anglais

SHIPPING

Logistic:

What does logistic mean?

Logistic is the system to have the good on the place
that the consumer usually goes to buy it. It is a
complex process with a lot of deadlines to respect. It
process need to planning , implementing and
controlling the effective and efficient flow of goods and
services.

University Paris IX Dauphine

Anglais

SHIPPING

INCOTERMS
Historical approach.

Before 1921, there is no a formal international shipping

law. For example, in 17th and 18th century, the shipping
between Europe and Asian was existed. But, due to the
long distance and lack of communication, we cannot
set up an international shipping rule until 1921. The
International Chamber of Commerce develop the
Incoterms in1921.
Nowadays, the International Chamber of Commerce
revise the international practices, types of goods, and
transports to adapt the rules to the actual needs. The
Incoterms will be update every year.

University Paris IX Dauphine

Anglais

SHIPPING

INCOTERMS
Features:

The Incoterms collected in one document all the issues

of delivering goods. This issues are:
1. Time and places of the delivery from the seller to
the buyer.
2. Time and place of the transmission of ownership of
the goods. Thats mean the transaction of the risk.
3. The distribution of the shipping cost.
4. The obligation to fear the duties and taxes.
The ICC are classified the Incoterms on four
categorizes. This classification is according to the
amount of seller obligation.

University Paris IX Dauphine

Anglais

SHIPPING

INCOTERMS
Features (cont.):

1. Export-Customs Declaration.
2. Carriage to port of export.
3. Unloading of truck in port of export.
4. Loading charges in port of export
5. Carriage (sea Freight/Air Freight) to port of import.
6. Unloading charges in port of import.
7. Loading on truck in port of import.
8. Carriage to place of destination.
9. Insurance.
10.Import customs clearance.
11.Import Taxes.

University Paris IX Dauphine

Anglais

INCOTERMS

SHIPPING

University Paris IX Dauphine

Anglais

SHIPPING

Tax & duties customs:

What is a duty?

A duty or tariff is a tax paid to government according

to the value of freight and insurance of the goods.
Different countries have different duty or tariff, depend
on different types of product. The average duty
worldwide is about 5 %. The tariff is collected at the
time of customs clearance in the foreign port.
Some countries have deals to have a free trade
agreements between each. Thats means in one
country some good manufacturing in another have
preference and are more cheaper than the product
made in the countries that are out of the agreement.

University Paris IX Dauphine

Anglais

SHIPPING

Insurance:

Why should insurance the

Buying insurance reduce the uncertainty about the risk
goods?
of the shipping.
Help the development of international trade. (protect
the buyers)
Nowadays, buying insurance can ensure a refund if the
buyers are not happy with the product quality or the
losing of the goods.

Market Value $46.02 billions.

Market Value $15.86 billions.

University Paris IX Dauphine

Anglais

SHIPPING

nternational shipping
How choose the best way to
ship?
Kind of good
Everything
High volumes and
Train
containers
high volumes and
Sea
containers
High Value or perishable
Aeroplane goods
Mixed
Everything
Road

Speed
High

Capacity
Low

Security
Medium

Cost
Low

Medium

High

High

Medium

Low

Very High High

Very High Low

High
Medium

Low

Very High High

Medium
Medium