We work as a freight forwarder and shipbroker. As a freight forwarder, we conclude our contracts exclusively on the basis of the German Freight Forwarders’ Standard Terms and Conditions 2016 (ADSp 2016). We provide our logistics services, insofar as these are not subject to the ADSp 2016, on the basis of the Logistics General Terms and Conditions as of July 2019. In clause 23, the ADSp 2016 further limit the statutory liability for damage to goods , which is 8.33 SDR/kg in accordance with the statutory regulation in section 431 of the German Commercial Code (HGB), to € 1 million per case of damage or € 2 million per damage event or to 2 SDR/kg, whichever is higher. In the case of multimodal transports including carriage by sea, the limit of liability is generally 2 SDR/kg.
Insofar as we act as Ship Broker, the bill of lading conditions and/or standard conditions of the shipping company represented shall apply to the contracts of carriage. Our brokerage contracts we conclude on the basis of the General Terms and Conditions for Ship Brokers and Ship Agents in Germany, latest version. Arbitration agreements do not apply.
What are Incoterms?
Incoterms are globally applicable and well-known agreements that regulate responsibilities and liabilities in international transport. They are codes intended to simplify and shorten common declarations and formulations in daily business. They were first published by the International Chamber of Commerce in 1936 and are subject to regular updates. The last revision took place in 2010 and has been valid since 01.01.2011. Incoterms are considered a regular part of contracts and are also recognised by the courts.
Why are Incoterms used?
Incoterms make it clear to everyone involved in a business transaction – worldwide – what is to be delivered to whom under what conditions and when the transfer of risk takes place. With the help of these short codes, (contract) negotiations are simplified, accelerated and standardised. There are eleven Incoterms in total: Seven are applicable to all modes of transport, four only to maritime transport.
Validity of the Incoterms
The following Incoterms apply to all modes of transport:
EXW – Ex Works / ex works (plus place of supply, e.g. EXW Hamburg).
The seller has delivered as soon as he has made the goods available to the seller at the named place, no transport is agreed.
FCA – Free Carrier (plus place of delivery, e.g. FCA Sydney)
The seller delivers the goods to the carrier or other nominated person at a nominated place. At this location the risk passes from the seller to the buyer.
CPT – Carriage Paid To (plus delivery point, e.g. San Francisco)
The seller delivers the goods to the place of delivery. He has to order and pay for the carriage.
CIP – Carriage and Insurance Paid To / freight paid insured (plus place of delivery)
As CPT, but in addition the seller takes out insurance for the transport.
DAT – Delivered at Terminal (plus terminal at port or place of destination).
The seller has delivered the goods as soon as the goods have been unloaded at the named terminal and made available to the buyer. Until then he shall bear all risks of carriage and unloading.
DAP – Delivered at Place (plus destination)
The seller has delivered as soon as the goods have been placed at the disposal of the buyer at the place of destination ready for unloading on a means of transport. Until then he bears all risks.
DDP – Delivered Duty Paid (plus destination)
As DAP, but the seller assumes all import or export duties until the goods are ready for unloading and takes care of all customs formalities.
The following Incoterms apply to sea and inland waterway transports:
FAS – Free Alongside Ship (plus port of shipment).
The seller has delivered as soon as the goods – at a quay or on an inland vessel – are in the port of shipment alongside the ship. From this point on, the buyer bears all costs.
FOB – Free on Board (plus port of shipment)
The seller has delivered as soon as the goods are on board the named vessel at the port of shipment. The risk shall pass as soon as the goods are on board.
CFR – Cost and Freight (plus port of destination)
As FOB, but the seller has to arrange and pay for the carriage.
CIF – Cost, Insurance and Freight (plus port of destination)
As CFR, but the seller has to insure the delivery additionally.