International freight rarely goes completely to plan. This was the case for a shipment of parts between Japan and the UK for a leading automotive manufacturer.
At the point of collection, the incoterms unexpectedly changed. This had an immediate knock-on effect which threatened the final deadline before the goods had even left the shipper.
What are Incoterms?
International Commercial Terms, known as incoterms, are 11 trade rules set by the International Chamber of Commerce.
These rules identify when the responsibility for risk management, liability and the cost of freight and customs clearance moves from seller to buyer. The timing depends on the mode of transport used in the shipment process.
For example, Carriage Paid To means the seller pays for the carriage of the shipment to the named destination, but the risk moves when the goods are handed to the first carrier.
In contrast, Free Carrier means the seller delivers the goods to a carrier selected by the buyer. The final destination is also selected by the buyer.
How did this change affect the shipment?
When the incoterms changed at the point of collection for this shipment, it meant the shipper needed to complete their own clearance before the goods could move. That added time to the process which hadn’t been factored in, compressing the window available to get the parts onto a UK flight.
Although this change isn’t uncommon in international freight, it meant the departure window was pushed back, while the final delivery deadline remained the same. At that point, the job becomes about finding the right departure at short notice and making sure everything is in place the moment the shipper is ready.
We identified and secured a flight that could depart within two days of the shipper completing clearance. Our team then monitored the situation closely, so we could move quickly once the window was confirmed. With a flexible approach, we could act fast without unnecessary back-and-forth.
Smooth delivery despite disruption
Thanks to the relationships we have with carriers, the flight departed as planned. This meant the parts were delivered to the UK destination on time, despite the initial disruption.
Keeping this job on track was made possible thanks to our effective communication, flexible approach and solutions-focused team. This helps us deal with short-term changes in international shipments quickly and effectively.
Contact our team to find out more.