FOB Shipping Point
The term FOB shipping point is a contraction of the term "Free on Board Shipping Point." The term means that the buyer takes delivery of goods being shipped to it by a supplier once the goods leave the supplier's shipping dock. Since the buyer takes ownership at the point of departure from the supplier's shipping dock, the supplier should record a sale at that point. FOB shipping point terms, the buyer is responsible for the cost of shipping the product to its facility. If the goods are damaged in transit, the buyer should file a claim with the insurance carrier, since the buyer has title to the goods during the period when the goods were damaged.
FOB Destination FOB destination is a contraction of the term "Free on Board Destination." The term means that the buyer takes delivery of goods being shipped to it by a supplier once the goods arrive at the buyer's receiving dock. There are four variations on FOB destination terms, which are:
• FOB destination, freight prepaid and allowed. The seller pays and bears the freight charges and owns the goods while they are in transit. Title passes at the buyer's location.
• FOB destination, freight prepaid and added. The seller pays the freight charges but bills them to the customer. The seller owns the goods while they are in transit. Title passes at the buyer's location.
• FOB destination, freight collect. The buyer pays the freight charges at time of receipt, though the supplier still owns the goods while they are in transit.
• FOB destination, freight collect and allowed. The buyer pays for the freight costs, but deducts the cost from the supplier's invoice. The seller still owns the goods while they are in transit.
Knock for Knock
A knock-for-knock agreement is an agreement between two insurance companies whereby, when both companies' policy-holders incur losses in the same insured event (usually a motor accident), each insurer pays the losses sustained by its own policy-holder regardless of who was responsible.
Bill of Lading
A bill of lading is a legal document between the shipper of goods and the carrier detailing the type, quantity and destination of the goods being carried. The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination. This document must accompany the shipped goods, no matter the form of transportation, and must be signed by an authorized representative from the carrier, shipper and receiver.
in economics, cargo or freight are goods or produce being conveyed – generally for commercial gain – by water, air or land. Cargo was originally a shipload.
A shipping container is a container with strength suitable to withstand shipment, storage, and handling. Shipping containers range from large reusable steel boxes used for intermodal shipments
Difference between cargo and container
A cargo ship can be any type of vessel which carries cargo in bulk or packaged form.
These can be bulk carrier, container ship, oil tanker, lpg tanker etc.
However a container ship carries cargo only inside a container. The cargo is stuffed inside a container and they are carried. The containers are of standard size ( 20 foot, 40 foot, 45 foot etc ) These containers occupy slots on a container ship and the ships are designed just to carry containers.There are exceptions to these as large cargoes can be carried on a container vessel outside a container if they are properly lashed and have the space for them. These are called OOG cargoes ( out of gauge).
Cargo insurance provides protection against all risks of physical loss or damage to freight from any external cause during shipping, whether by land, sea or air Subject to certain packing exclusions, this freight insurance policy pays regardless of which carrier is ultimately responsible for the loss or damage.
Hull and machine Insurance
In many cases the ship will be liable in law for any damage caused to the other ship or object. The hull and machinery policy, although mainly a physical damage policy, does provide an element of liability cover so long as the collision is with another ship.
Hague Visby Rules
The Hague–Visby Rules is a set of international rules for the international carriage of goods by sea.
By contrast, the shipper has fewer obligations (mostly implicit), namely: (i) to pay freight; (ii) to pack the goods sufficiently for the journey; (iii) to describe the goods honestly and accurately; (iv) not to ship dangerous cargoes (unless agreed by both parties); and (v) to have the goods ready for shipment as agreed
Under the Rules, the carrier's main duties are to "properly and carefully load, handle, stow, carry, keep, care for, and discharge the goods carried" and to "exercise due diligence to ... make the ship seaworthy" and to "... properly man, equip and supply the ship". It is implicit (from the common law) that the carrier must not deviate from the agreed route nor from the usual route; but Article IV(4) provides that "any deviation in saving or attempting to save life or property at sea or any reasonable deviation shall not be deemed to be an infringement or breach of these Rules".
The carrier's duties are not "strict"