Letter of Credit vs T/T: Which Payment Term Should You Use?
Your buyer wants to pay by T/T. Should you accept? The decisive difference between a letter of credit (LC) and a telegraphic transfer is what the bank is obliga
# Trade Basics
Posts tagged ‘Trade Basics’
What Does a Freight Forwarder Actually Do? (And How They Differ from Carriers)
A freight forwarder owns no ships. So why do exporters book through one instead of going straight to the carrier? Here are the five things forwarders actually d
Demurrage vs Detention: Why the Extra Invoice Arrives
The freight matched the quote, then a second invoice shows up. Something about handling the container too slowly. The two charges sound alike and occur close to
LCL vs FCL: Which Should You Choose?
Book a whole container, or share space with other shippers? Deciding on cargo volume alone can cost you more than it saves, because the two options are priced o
What Happens If the Invoice and Packing List Quantities Don't Match
A single unit of difference is a discrepancy. The bank does not decide which figure is correct. It only registers that the two documents disagree. The short ans
The Risk Window FOB Creates for Containerized Cargo
Habit keeps FOB in use, but with containers the seller keeps bearing risk for a phase they no longer control. This is why the ICC recommends FCA. The assumption
All Eleven Incoterms, Grouped Into Four
Memorizing eleven terms one by one leads to confusion. Grouping them by their first letter makes the structure visible. What Incoterms determine Incoterms are t
Why CIF Insurance Is 110%
Not 100 percent, not 120. There is a reason for the figure. And there is a trap that matters more than the number itself. Where 110 percent comes from Under CIF
FOB vs CIF: Which Term Should You Choose?
Risk transfers at the same point under both terms. Cost and documents work completely differently. Here is what should actually drive the decision. Start with w
