What is it? Last Mile Delivery refers to the final stage of the supply chain, where goods are transported from a distribution hub or fulfillment center to the end destination, often a residential or business address. This crucial phase represents the last leg of the logistics journey, completing the process of getting products into the…
What is it? Carrier Capacity is a fundamental concept in the realm of logistics and transportation, defining the maximum volume of goods or cargo that a transportation carrier can handle within a specified period. It encompasses the capabilities of various carriers, including shipping companies, trucking firms, railways, and airlines, to efficiently transport goods from one…
Definition: CFR, or Cost and Freight, is a widely used international trade term that defines the responsibilities, costs, and risks associated with the shipment and delivery of goods. CFR is part of the Incoterms (International Commercial Terms) and indicates that the seller is responsible for both the cost of goods and the freight charges to…
What is it? A Letter of Credit (LC) is a financial instrument widely used in international trade transactions. It represents a written commitment from a bank, on behalf of the buyer (importer), to pay the seller (exporter) a specified amount of money under specific conditions. LCs provide a secure method of ensuring that sellers receive…
Definition: CPT, or Carriage Paid To, is a significant international trade term that delineates the responsibilities, costs, and risks associated with the delivery of goods from the seller to the buyer. As part of the Incoterms (International Commercial Terms), CPT specifies that the seller is obligated to arrange and pay for the transportation of the…
What is it? Delivery at Place Unloaded (DPU) is an Incoterm, a standardized set of international trade rules published by the International Chamber of Commerce (ICC). DPU represents an agreement between a buyer and a seller regarding the delivery of goods. In this context, the seller is responsible for delivering the goods to a specified…
Risk Management: The risk associated with the goods transfers from the seller to the buyer once the goods are placed alongside the ship. This demarcation point aids in risk management and helps both parties understand their obligations. International Trade Facilitation: FAS is part of a set of standardized rules (Incoterms) that facilitate international trade by…
Definition: Ex Works (EXW) is an international trade term that defines the responsibilities, costs, and risks associated with the delivery of goods from the seller to the buyer. Under EXW terms, the seller’s primary obligation is to make the goods available for pickup at their premises or another named place (such as a factory or…
Definition: CIP, or Carriage and Insurance Paid To, is an international trade term that outlines the responsibilities, costs, and risks associated with the delivery of goods from the seller to the buyer. CIP terms specify that the seller is responsible for arranging and paying for the carriage (transportation) and insurance of the goods to a…
Revenue Collection: Customs duties and taxes collected during the clearance process are a significant source of government revenue. These funds can be used to finance public services, infrastructure, and other government initiatives. Security and Regulation: Customs clearance is a vital component of national security. It helps governments track the movement of goods, prevent illegal activities,…