* Cash-in-Advance
* Letters of Credit (LCs)
* Documentary Collections (D/C)
* Open Account
* An open account transaction is a sale where the goods are shipped and * delivered before payment is due, which in international sales is typically in 30, 60 days.
* Consignment
EXW - Ex Works
Buyer will pay all freight charges from the seller door to the door at destination. The seller needs to ensure the freight is ready for shipping and provide all the correct documents i.e. commercial invoice and packing declaration. The buyer will have full control of the freight.
FOB - Free on Board
Seller will arrange through their freight forwarder the movement of the goods up to the origin port. The goods will then be the buyer’s responsibility. Their nominated forwarder will take control from here. Freight and destination costs will be charged to the buyer.
CFR - Cost & Freight
Costs from the seller’s door to the destination port will be paid by the seller. Given the seller is responsible for transportation, they also nominate the forwarder. The buyer will take care of the destination charges.
CIF - Cost, Insurance & Freight
Similar to CFR but the maritime insurance cost will be paid by the seller. Insurance cover will up to the destination port only
Partial load shipment?
Partial load (LTL) shipment does not take space for a full truck. Several partial shipments are consolidated in a truck and transported to the transshipment point or logistics center. In this point shipment is reloaded to another truck, which arranges delivery to consignee’s warehouse.