by logisticsplus | Oct 27, 2015 | News
Incoterms® refer to a series of rules that define the responsibilities of sellers and buyers (business-to-business) when they purchase and ship goods internationally. These could include various costs and performance tasks which all businesses involved agree to handle.
Background
Incoterms were originally designed by the International Chamber of Commerce, in order to establish a more universal terminology across different members of the international trade industry. They were first introduced in 1936, and are revised as needed. Generally, their life span averages about 10 years. The 2010 Incoterm rules consist of 11 different terms that aid users in dealing with different situations that involve the movement of goods.
Significance
Using Incoterm rules in agreements ensures that both parties are on the same page, thus reducing the possibility of misunderstanding and increasing the likelihood of fulfillment. Incoterm rules are a very significant part of purchase-sales contracts, and it is therefore very essential that both the seller and buyer understand how to use them properly.
General Guidelines
- All Incoterms rules must include the exact geographical place.
- Incoterms must be cited in purchase-sales contracts.
- Incoterm rules are always in English regardless of the contract language.
- Each Incoterm rule has a three letter abbreviation.
- Each Incoterm rule states the location where seller risk (referred to as “delivery”) for the condition agreed upon ends.
- All Incoterm rules require the packaging of goods for transport by the seller.
2010 Incoterm Rules
- Ex Works (EXW): refers to the most basic shipment arrangement, where the seller is only obliged to ensure the packaging and availability of a good and notify the buyer.
- The F-Group (FOB, FAS, FCA): overall, terms in this category indicate that the seller is only responsible for delivering the goods to a carrier determined by the buyer.
- The C- Group (CIP, CPT, CIF, CFR): terms in this category indicate that the seller is obliged to contact and pay for carriage, but is not responsible for cost or risk once the goods are shipped.
- The D- Group (DAF, DES, DEQ, DDU, DDP): terms in this category indicate that the seller is responsible for all costs associated with bringing goods to a certain location determined by the buyer.
Please check out our useful online Incoterms Guide, or contact us for more information. If you have an international shipment ready to go, click the button below to request a free, no-obligation transportation quote.
by logisticsplus | Oct 24, 2015 | News
Thank you to our customers, government officials, media partners, and friends for helping us celebrate the grand opening of the ERI FTZ powered by Logistics Plus! The ribbon has been officially cut, and we are now ready to serve the regional business community by providing access to this general purpose Foreign Trade Zone – along with the world-class warehousing, transportation and logistics services you have come to expect from Logistics Plus!
We’d also like to recognize and thank the following individuals that played special roles in bringing this project to life, and for their help and comments at the ribbon-cutting ceremony:
- Chris Rogers, Executive Director, Erie International Airport
- Sheilah Bruno, Chief Financial Officer, Erie International Airport
- Brenda Sandberg, Executive Director, Erie-Western Pennsylvania Port Authority
- Gary Lee, Director of Administration for Erie County (representing County Executive, Kathy Dahlkemper)
- Gretchen Blough, Customs Brokerage Manager, Logistics Plus
- Adam Mook, Compliance Department Manager, Logistics Plus
- Jim Berlin, Founder & CEO, Logistics Plus
Lastly, in case you missed it, click the image below to view local media coverage of the event.
by Scott Frederick | Oct 21, 2015 | News
As previously announced, Logistics Plus has a new Dallas/Fort Worth, TX (DFW) warehouse! It was an “all-hands-on-deck” effort to make the move; but the mission has been accomplished and the DFW warehouse is now fully operational (see slideshow below). The new facility has 180,000 square feet of storage space, an open floor plan, high ceilings and tall dock doors – all perfectly suited for heavy lift freight and cargo. Companies currently utilizing Logistics Plus warehousing and distribution services in the Dallas/Fort Worth area include GE Transportation, Komatsu America, Harbin Electric, and numerous others. We also have the single largest forklift in all of Dallas! Our fuel-efficient, pneumatic tire forklift weighs over 95,000 pounds and has the capacity to lift steel, equipment or machinery weighing up to 62,000 pounds!
by logisticsplus | Oct 21, 2015 | News
What are Foreign Trade Zones?
A Foreign Trade Zone (FTZ) is a secured area, where both domestic and foreign commercial goods receive the same treatment by U.S. Customs and Border Protection as if it were outside the commerce of the United States. This means that merchandise may enter Foreign Trade Zones without a formal customs entry and payment of customs duties.
When were Foreign Trade Zones (FTZs) created?
During the Great Depression, the U.S. Foreign Trade Zones Act of 1934 created the FTZ program in attempts to expedite and encourage foreign commerce, and reduce costs for U.S.-based operations engaged in international trade.
Where are Foreign Trade Zones (FTZs) located?
FTZs are generally located in an area in or adjacent to a United States port of entry, where they are supervised by U.S. Customs and Border Protection. Every state currently maintains at least one FTZ, and some have many more. Today, there are more than 230 general purpose FTZs (those available to more than one company), and nearly 400 subzones (those designated for one company only), that operate in the United States.
Why should you use FTZs?
There are benefits to using Foreign Trade Zones, which include:
- Helping U.S. businesses become more competitive by deferring, reducing, and eliminating custom duties on goods entering FTZs.
- Allowing businesses to hold their goods in an FTZ for an indefinite amount of time, until they are either exported from the U.S. or entered into the U.S.
- Enabling companies to transfer goods within the U.S. to another FTZ (zone-to-zone transfer) and outside the United States, while also reducing manufacturing processing fees.
- Allowing companies to closely track their inventory, thus improving their compliance, inventory tracking, and quality control.
Who should you contact to find out more about FTZs?
Logistics Plus has an activated general-purpose FTZ in Erie, PA, and a soon-to-be-activated FTZ in Dallas/Fort Worth, TX. If you have questions or would like to learn more about Foreign Trade Zones, feel free to contact either of these Logistics Plus FTZ experts:
by Scott Frederick | Oct 20, 2015 | News
Time and accuracy are both important when it comes to shipping. That’s why it’s important to provide correct and accurate information when requesting freight quotes for transportation services. If you’re shipping LTL, truckload, expedited, or international, here are some general guidelines to help ensure you receive a prompt and precise rate estimate from your freight broker or freight forwarder.
Know what you are shipping and be clear about it.
This seems obvious, but it is surprising how many people try to get freight quotes without providing specific details on what it is they’re shipping. The commodity type and description matter. Special rules apply to certain raw materials, or items that may be imported or exported. Household goods and used products have different limitations on insurance and which carriers have authority to handle the shipment. Less-than-truckload (LTL) shipments have very complex and detailed freight classifications and density rules that may impact how your shipment is rated. So provide this detail up front if you can (in fact, if you already know your NMFC item number or your HTSUS code, go ahead and provide it in your quote request).
Know the size, weight and dimensions of your shipment.
Your shipment dimensions and weight should include whatever packaging is used to ship your goods, e.g., cartons, pallets, totes, etc. Having accurate weight and dimensions will avoid inspection and reweighing fees, and messy invoice corrections down the road. Weight and size are also particularly important for air freight shipments. Air freight prices are based on weight and size while ocean freight prices are generally just based on size.
Know where you are shipping to and from.
Again, this sounds obvious, but in the world of domestic freight shipping, it’s important for the carrier to know whether they are picking up at, or delivering to, a place of business or a residential location. Shipments to special locations, e.g., airports, container freight stations, convention centers, grocery warehouses, etc., may also require additional services or fees. When it comes to international shipping, your freight forwarder will need to know if your import or export is being shipped door to door, door to port, port to port, port to door. Being ready with addresses for the pickup and delivery locations is the best way to get the most accurate freight quote and service estimate.
Request your freight quote close to when you are shipping.
Transportation rates are very volatile with variables such as fuel costs, available capacity, and shipper demand. These variables are often not fully known until closer to your actual shipment date. Unless you’re a giant shipper like Walmart or Costco, you’re dealing with a constantly changing spot market for transportation rates. Even if you have negotiated LTL or truckload transportation rates, you will still be subject to weekly fuel price changes. As a rule of thumb, freight quotes for LTL or truckload shipments are generally good for about 7 days; whereas, freight quotes for air or ocean shipments are good for about 30 days.
If you’d like a free freight quote from the award-winning transportation and logistics team at Logistics Plus, simply click the button below. We provide quick, no-obligation freight quotes for LTL, truckload, expedited, international, project cargo, and more. Provide us with as much information as you can (the more the better), and we’ll take it from there!
by logisticsplus | Oct 16, 2015 | News
FOR IMMEDIATE RELEASE
Logistics Plus Moves Into a New Dallas/Fort Worth, TX Warehouse
Announces the Hiring of Dawn Fritchie as its Warehouse Manager
ERIE, PENNSYLVANIA, October 16, 2015 – Logistics Plus Inc., a worldwide provider of transportation, logistics and supply chain solutions, is proud to announce it has moved its Dallas/Fort Worth (DFW), Texas warehouse to a new and improved facility located at 920 Westport Parkway, Haslet, TX 76177. The new facility will have 180,000 square feet of storage space – over double its previous location – and is well-suited to handle large, heavy equipment with a pneumatic tire forklift that has 62,000 pounds of lifting capacity.
In parallel with the move, Logistics Plus has hired Dawn Fritche as its new DFW Warehouse Manager. Dawn brings 25 years of supply chain management experience to the position. Most recently she was operations manager for the Tractor Supply Company, and prior to that she held numerous supply chain roles with J.C. Penney Company.
“We are very excited to have Dawn join us to run the DFW warehouse,” said Jim Berlin, founder and CEO for Logistics Plus. “This will be her baby, and I know she is working hard getting everything ready to go. We are so excited about the new facility and to have Dawn on the team!”
Logistics Plus is advising its current DFW warehouse customers and suppliers to use the new address for any shipments on or after October 20th. The move is also being made to better prepare the facility for Foreign Trade Zone (FTZ) activation status. Earlier this week, Logistics Plus announced the activation of the general-purpose ERI FTZ warehouse in northwestern Pennsylvania.
To learn more about the Logistics Plus DFW Warehouse, please visit https://www.logisticsplus.com/DFW
About Logistics Plus (LP)
Logistics Plus Inc. provides freight transportation, warehousing, global logistics, and supply chain management solutions through a worldwide network of talented and caring professionals. Founded in Erie, PA by local entrepreneur, Jim Berlin, 20 years ago, Logistics Plus has been repeatedly recognized as one of the fastest-growing transportation and logistics companies in the country. With a strong passion for excellence, its 350+ employees put the “Plus” in logistics by doing the big things properly, and the countless little things, that together ensure complete customer satisfaction and success.
The Logistics Plus® network includes offices located in Erie, PA; Fresno, CA; Los Angeles, CA; San Francisco, CA; Evansville, IN; Detroit, MI; Kansas City, MO; Charlotte, NC; Lexington, NC; Buffalo, NY; Cleveland, OH; Charleston, SC; Greenville, SC; Nashville, TN; Dallas, TX; Fort Worth, TX; Laredo, TX; Houston, TX; Australia; Bahrain; Belgium; Canada; Chile; China; Colombia; Egypt; France; Germany; India; Indonesia; Kazakhstan; Libya; Mexico; Poland; Saudi Arabia; Turkey; UAE; United Kingdom; and additional agents around the world. For more information, visit www.logisticsplus.com or follow @LogisticsPlus on Twitter.
Media Contact:
Scott G. Frederick
Vice President, Marketing
Logistics Plus Inc.
(814) 240-6881
scott.frederick@logisticsplus.com
