Deliver Your Vehicle Stress Free

Compare our rates to or from: any location in the world

  • Deliver Your Car Stress Free and Have Peace of Mind
  • Licensed, bonded and insured carriers ready to serve
  • RORO, container & air freight transport overseas
  • BBB A+ rated award winning service, Always on Time

Trusted By:Trusted By Seals

Auto Shipping Free Quote Calculator

Or Call Us:

Submitted by Samuel Owusu on 4/18/2019

Most of the past writings talked about domestic transportations, traffic regulations and how drivers should behave in their day to day operations. This essay deals with a higher form of transportation. It concerns with the movement of goods (autos, components, raw materials, finished goods, etc.) from one country to another.

Transportation in logistics and supply chain management is an important function. Without it, the logistics function and the whole supply chain operation will not be complete or successful. It is important because most countries do not manufacture vehicles and their components.

Not only vehicles, but most countries rely on other countries to produce most of the things they needed to survive as a nation. Therefore, for such countries to have a good transport system and another livelihood, it becomes necessary to import (buy/bring) goods and other components from countries that produce them. This function (transportation in export and import) comes with several risks, aside from their benefits to both the importing countries and the exporting (selling/sending) countries due to different laws and languages used in other countries.

In the past few decades, the movement of goods across international borders was a difficult and stressful endeavor more than it is today. The major contributor to these difficulties in the movement of goods from one country to another was the language barrier. That is when there is a miscommunication between two parties in different countries.

One party (buyer) said this; the other party (seller) understood it differently, resulting in legal battles among business partners who were supposed to collaborate to achieve Written By Samuel Owusu (BSc, MBA) their individual business objectives. Another major player was the difference in national legislations and trade rules. In those days, when it comes to international transactions, it becomes a battle as to which country’s laws should be adopted for the contract of transportation between one country and another.

Normally, what happened in those periods is that the bigger countries swallowed the smaller ones. This means that, for instance, when there is a transaction between a citizen of Ghana and another party in America or somewhere in Europe, always, the laws of the bigger country was adopted, leaving the party from the minor country with no option, even though they may not understand the laws of the other country.

These problems among others led to the creation of Free On Board (FOB) in 1812. Consequently, in the year 1919, the European Union of Emission Trading Scheme created their own commercial terms to streamline international movement of goods among their member countries. This was an improvement of the previous available regulatory framework. However, there still remained problems and limitations in international transportation or logistics.

So, in 1936, the International Chamber of Commerce came up with its first draft of international commercial interpretations referred to as “INCOTERMS” (International Commercial Terms). Incoterms ended major international trade setbacks, apart from bridging the language barrier between international trade parties. Incoterms act as a common legal platform for all parties in an international trade agreement or contract.

Incoterms, depending on the specific term chosen under a particular international logistics contract, specifies which party performs which task under the contract. For example, during the movement of goods across countries, there is a need for the goods to be insured against damages in case of a shipwreck in sea transportation. So, incoterms ensure that each party (purchaser/buyer and seller/supplier) is aware of their obligations and responsibilities from the onset of the international purchase to the time when the goods finally reach its final destination.

The final destination is not always when the buyer takes delivery of the goods. The final destination under incoterms is usually specified in the contract. Liabilities and the exchange of risks and title-ship to the goods are not covered by incoterms. These must be specified in the international or domestic sale agreement.

Since its first creation in 1936, incoterms have gone through a series of modifications in order to adapt to the current economic growth or changes in that era. For instance, in 1953, incoterms went through modifications and again in 1967. One major setback among all these modifications was that they did not include air transportation. So, in 1976, a further modification was carried out to adopt air transport into terms to enhance the movement of goods through air transportation among international borders.

Consequently, the ‘terms’ went through changes in 1980, 1990, 2000, and the year 2010. The major modification between the incoterms 1980 and incoterm 1990 was that, in 1990, the International Chamber of Commerce (ICC) who is the official legislature and creator of incoterms, dealt away with Free-On-Rail (FOR), Free-On-Trail (FOT) and FreeOn-Airport (FOA) because these three terms were becoming obsolete, bringing simplification into the legislation of the terms. So, in 1990, they were reduced to 13 terms, namely; Free On Board vessel (FOB), Ex-Work (EXW), Free Carrier (FCA), Free Alongside Ship (FAS), Cost & Freight (CFR), Carriage, Insurance & Freight (CIF), Carriage Paid To (CPT), Carriage & Insurance Paid (CIP), Delivery At Frontier (DAF), Delivery Ex Ship (DES), Delivery Ex Quay (DEQ), Delivery & Duty Unpaid (DDU) and last but not the least, we have Delivery Duty Paid (DDP).

The modification in the year 2000 did not reduce the number of incoterms though, however, the ICC made clarifications with regards to the allocation of loading and offloading costs between the seller and the purchaser. In 2010, the ICC reduced the number to 11 incoterms. They removed DEQ, DES, DDU, and DAF. However, the ICC incorporated two new terms in place to the four they removed, namely the DAP and DAT which stands for Delivery At-Port and Delivery-At-Place respectively. However, they did not take effect until January 2011.

Importance of Incoterms
The following are a summary of the importance of incoterms and why transporters need to be aware of them.
1. Power-Bank – Incoterms serves as a power bank for transporters. There is a saying that, knowledge is power. The more you know, the more powerful you become. In negotiation, the one who knows more about the type of contract and the meaning of all the important clauses contained in the contract has more power and is more likely to negotiate profitably than the one who knows only a little or nothing at all.

If transporters are to make profitable negotiations in the movement of goods from one country to another, they must know all about the important incoterms available, so they can choose the right options for their operations.

2. Simplification of international trade – one of the major contributions since its introduction by the ICC is the fact that they made international movement of goods so simple, removing all unnecessary barriers such as language differences and multiplication of laws – thereby streamlining international transportation of goods. This
was also one of the initial objectives of the ICC for its formulation.

3. Incoterms makes everybody somebody – In the past, as mentioned earlier in this writing, the bigger countries gains more advantage over the smaller ones when choosing which law should govern international transport contract. Today, due to incoterms, regardless of the size of one’s country, each party has the same or equal rights under the contract.

4. Strategic planning purpose. Companies obtain value when the right incoterm is used for their international transportation. If the wrong one is used, they will run at lost in cash and/or in-kind, when the goods get damaged or stolen. Therefore, it is important for transporters to understand incoterms thereby selecting the right one in times of need to obtain value for their companies.

Types of Transportation

To obtain value for money, transporters or professionals within the entire supply chain must select the type of transport based on what they are trying to move. For example, the transport mode for carrying vehicles from another country will be determined by the number or size of the order or purchase and the type of cars, either small or large
vehicles. The following is a list of major types of transportation used today.

1. Sea Transportation (Freight). The movement of goods by sea.
2. Conventional Cargo or General Cargo.
3. Charter Shipping, which is, bulking. Shipping in bulk.
4. “Roll On & Roll-Off” Vessels. It’s generally referring to as RORO/Lashing. This is considered
as the cheapest method of moving cargos but it’s also the one with less security and
safety for the goods being carried.
5. Containerized. Under containerized transport, one can either use full containerized
loading also known as FCL, Less than Full Container Loading (LCL)
6. Land Transportation, which includes rail and road (trucks)
7. Air Transportation (Airfreight) movement of goods by air.
8. The multimodal Transportation system, which uses more than one type of transportation
under one sale contract.

The election of a particular incoterm under sale agreement will be determined by the type of transportation to be adopted. For example, if rail or road transport will be used, one cannot adopt FAS, FOB or CIF unless sea transport is to be used for the movement of the goods. Undersea transportation, all the incoterms are applicable except DAF. DAF is applicable for only road and rail transport. However, FCA and DDP are applicable under all types of transportation.

Transportation and incoterms are interesting subjects in the movement of goods, both domestic and international. The more transporters educate themselves in these areas, the more value they could create for their corporations and the more profitable they become.

Today, companies are looking for people who create values due to the increased competition in the marketplace fueled by increasing focus on internationalization, technological advancement, and consumer dynamics.

Submitted by Samuel Owusu on 4/18/2019

Share this content on social media
for a chance to get up to 15% off your next shipment.
Copy link

Mylene Rutllant
It’s my number one pick in auto shipping to this day.

Due to the nature of my work, I must relocate every couple of years to where my company needs me. Because of this, I’ve tested several moving and auto transport companies over the years.

And my choice in terms of auto transport has to be A1 Auto Transport. It’s in the name, but also in the quality with which they do their jobs. I’ve never had a problem with this company.

The only time my shipment was delayed was during winter when a snowstorm closed down all the major roads. And they still found an alternative and got my car delivered before roads got unstuck.

When I moved to West Virginia, they picked up my car the very day I called them. I like to think they take special care of me considering all the business I’ve sent them. I’ll continue to support A1 Auto Transport. It’s my number one pick in auto shipping to this day.

Luis Rodriguez
You have my full support and recommendation!

I considered selling my car when I moved to Washington. It was old and rusty, but I grew attached to it. So, I called a couple companies to transport it to my new home, but they both fell through.

The first one couldn’t decide on a schedule. He would constantly change the pickup date till I got frustrated and canceled. The second was insufferable, very rude on the phone, even worse in person.

They started picking a part my car asking me why I still have it. If that’s their opinion of my vehicle, how can I trust they’ll take care of it? If something happened midway, why wouldn’t they just blame it on the car instead of paying up?

So, I cancelled this company as well and turned to A1 Auto Transport. From the get go, they were very different from my past options. Their website was very professional and up to date, full of useful information. I requested a quote using their online form, and I got an email response within an hour. Surprisingly fast!

If I didn’t know any better, I would’ve thought they were lacking customers, but the email spoke for itself. In just one email, everything I needed to know was there, including a contact number I could use to get more information or confirm the transport.

I called and got things rolling. I was very pleased with the driver. He followed standard procedure and represented his company well. Can’t remember his name, but props to him!

The car arrived in Washington 6 days later in excellent condition. From what I understand, the transport was delayed a bit by a storm, but since the time window was 4-6 days from the beginning, I don’t really care. You have my full support and recommendation!

Testimonial by Cristine Benoit
Cristine Benoit
I can safely say this is a legit company that will get the job done.

There are a lot of options for auto transport these days, which surprisingly makes it harder to find a good company. I received more than 10 offers to ship my car, but I couldn’t decide on any of them.

After doing some research, I got even more worried reading about all the scams and accidents that can happen. But, I have work to do and couldn’t afford to drive my newly purchased Mini Cooper all the way to Virginia.

Fortunately, I made the right choice with A1 Auto Transport. They are very good at their jobs. I spent more than an hour drilling Joe with various questions, and he never once lost his patience. He saw I was interested, so he bore with me until I was satisfied. The driver was also very courteous and my car was intact on arrival. I couldn’t have asked for more.

By the way, the price we first agreed on stayed the same. There were no delays or unexpected “surprises.” I can safely say this is a legit company that will get the job done.

David Osallo
We give A1 Auto Transport a big 10 out of 10!

We give A1 Auto Transport a big 10 out of 10! We chose them to move our car from California to Vermont, since we needed professionals.

We were abroad during the transport, so the transport was a bit tricky. The driver had to pick it up from storage on short notice and get it to its destination within at most 10 days. I was happy to note it arrived sooner. We got it 3 days early, right when we got home to pick it up. It made getting around way easier. Awesome service!

Visit our social, and see for see what our clients saying about us

Ship Your Vehicle With A-1 Auto Today
Get an instant free Quote Now

Or Call Us Today and Speak to Directly to Our Sales Team:

Our Partners:

Better Business Bureau Accredited
FMCSA Member
INC. 500 Member
VeriSign Secured
AMSA Member

A-1 Auto Transport is a disclosed agent for the following shipping companies:

Trans Global Auto Logistics, Inc.
3401 E Randol Mill Rd
Arlington, TX 76011
NO. 018191NF
CFR Rinkens
15501 Texaco Avenue
Paramount, CA 90723
NO. 013055NF
ABC Worldwide LLC
2840 NW 2nd Ave #105
Boca Raton, FL 33431
NO. 025472F
CSI Logistics
435 Division Street
Elizabeth, NJ 07201
FMC 22206
Intl Cargo
45 Campus drive
Edison, NJ 08837
NO. 17858N
ShipYourCarNow LLC
1160 South Rogers Circle Suite 1
Boca Raton, FL 33487
NO. 025646
Merco Air & Ocean Cargo, Inc.
6 Fir Way
Cooper City, FL 33026
NO. 021869F
Copyright © 1988-2021, A-1 Auto Transport - All Rights Reserved.