I trade X incoterm
I've seen a handful of traders refer to what they do based on an incoterm/location. Not sure I quite understand this:
What does "I trade CIF Africa" actually mean? Does it mean you focus on originating product from all over the world, but only ship to customers in Africa? Can said trader still trade CFR or DDP if they wanted? When they specify CIF Africa on their CV, are they trying to convey a specific skillset or is it just something ppl say i.e., does the "CIF" component of "CIF Africa" convey something specific to a headhunter?
In sum, it is just a term for the goods to be delivered in Africa, where the Seller is in charge of providing transportation/shipping.
Yea that’s what I get too, but why do traders categorize themselves this way? And why are commodity groups grouped this way?
For example, why is it a "CNF North America team"? What is the significance of CNF that a team would be formed around it?--I guess this is what I''m trying to understand. I'm sure anyone outside the industry would be similarly confused that a team is built around an incoterm.
The incoterms play a significant role in the shipping industry as the traders use it in the contracts to explain the cost and risk liabilities. You will commonly find exporters and importers writing “I trade CIP incoterm” or ”I trade FOB incoterm”. These statements imply that the trader is claiming that he supplies the goods under the terms and conditions of the incoterms he is using. The incoterms are represented by acronyms which is why traders state “I trade X incoterm” where X can stand for any of the 11 incoterms that are published by the ICC (International Chamber of Commerce).
For instance, consider the aforementioned statement “I trade CIF Africa”. Here, you have to understand that the trader is claiming that he ships consignments to Africa and pays for the costs, insurance and freight of the goods. This is because CIF stands for “Cost, Insurance and Freight” and the seller is held reliable for paying the same and ensuring the accuracy of the payment. The incoterms are accepted by all the legal authorities of the trading countries. So, it is quite common to find such statements in shipping contracts and formal conversation with the traders. Being an integral part of the international trading industry, you should consider enhancing your knowledge and understanding of all the 11 incoterms. The more you know, the better you perform!
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