The Summit took place August 8-9, 2019 at the USC Campus in Los Angeles, CA. DACHSER USA was present with a booth on the exhibition floor and Guido Gries, Managing Director DACHSER Americas participated as a speaker on the "Global Trade and Economic Outlook Plenary" panel.
A new version of the Incoterms will take effect on January 1, 2020, and will include a number of changes. The terms of delivery issued by the International Chamber of Commerce regulate essential buyer and seller obligations in international trade, such as transfer of goods to the buyer, transport costs, liability for loss of and damage to goods, and insurance costs.
With the adaptation of the Incoterms 2020 to current global trading practices, the new version is very up-to-date and practice oriented. The aim of the revision was to make the Incoterms clauses more user-friendly. For example, their presentation has been revised to make it easier for users to select the appropriate clause. In addition, the order of the clauses has been changed, and revised user instructions have been added to each clause.
In terms of contents, significant changes have been made to the Intercoms 2010, in particular the following:
- Different coverage levels in CIF and CIP: As in the past, the seller is still obliged in the Incoterms 2020 to take out transport insurance at their own expense in clauses CIF (Cost Insurance Freight) and CIP (Carriage Insurance Paid). In contrast to the Incoterms 2010, however, the two clauses now provide for different minimum coverages. The minimum coverage to be observed when the CIF clause has been agreed remains unchanged. The transport insurance to be taken out by the seller must continue to at least correspond to the coverage in accordance with the (C) clauses of the Institute Cargo Clauses or similar clauses (insurance of named risks). If the CIP clause is agreed, the seller must now provide insurance coverage in accordance with the (A) clauses of the Institute Cargo Clauses (all-risk coverage). Both the CIF clause and the CIP clause allow the parties to the contract to agree on insurance coverage that differs from this.
- Inclusion of security-related requirements: Security-related requirements for the transport of goods have now been included in Rules A 4 and A 7 of each Incoterms 2020 clause. As with other the Incoterms clauses, it should be noted that the Incoterms clauses only directly apply to the parties to the sales contract and are not the subject of the contract of carriage.
- The Incoterms 2020 contain regulations for transporting with one’s own means of transport in FCA, Delivery at Place (DAP), Delivery at Place Unloaded (DPU), and Delivered Duty Paid (DDP).
- For goods sold under the FCA (Free Carrier) clause and intended for sea transport (such as goods in containers), FCA is stipulating a new option in the future. The buyer and seller may agree that the buyer shall instruct its freight carrier to issue an on-board bill of lading to the seller after the goods have been loaded. At the same time, the seller is obliged to hand over this on-board bill of lading to the buyer. This is typically done through participating banks.
- Renaming of DAT to DPU (Delivered at Place Unloaded). According to the Incoterms 2010 DAT clause, the seller delivered the goods as soon as they were unloaded from the means of transport at a “terminal.” However, according to the Incoterms 2010 application notes, the term “terminal” was not to be understood from a technical point of view but meant any unloading location. This fact was taken into account in the Incoterms 2020 by renaming the previous DAT clause to DPU (Delivered at Place Unloaded) for the sake of clarity. That means that in the future, any (agreed) place can be the place of destination.
The Incoterms apply between the parties of a (national or international) sales contract and address – but are not limited to – special rights and obligations within this contractual relationship. On the basis of a uniform definition guaranteed in this way, subsequent problems of interpretation or discrepancies between the parties to the sales contract are to be avoided. It should be noted that the Incoterms, due to their character as GT&C-like provisions, do not constitute statutory provisions and thus only become legally binding if they have been effectively agreed between the parties to the sales contract by means of a corresponding reference (for the Incoterms 2020, this is also possible before 1/1/2020). Irrespective of this, in individual cases conflicting statutory provisions still take precedence over an Incoterm clause.
The Incoterms were revised by 500 experts from more than 40 countries.The clauses are recognized worldwide and are in use in more than 30 different languages.
Delegation from Germany visits DACHSER Minneapolis
On October 2nd, our Minneapolis office welcomed a delegation from Neuss, Germany and St. Paul, MN. The local DACHSER team presented our setup and services in the US during a business breakfast that morning.
The new DACHSER magazine is here!
DACHSER’s European overland transport network has expanded over the years. The secret has always been putting the right pieces of the puzzle in the right places to complete the overall picture.
IMO 2020 regulations are making ships cleaner
New environmental guidelines from the International Maritime Organization for global shipping traffic will take effect in January 2020.
Cars have their electric motors, hybrid drives, and fuel cells, while in international shipping, IMO 2020 is set to improve the industry’s environmental footprint. According to these International Maritime Organization regulations, as of January 1, 2020, ships will be required to reduce their emissions of sulfur oxides by 85 percent. This applies to all fuels used on the open sea around the world. Currently, the overwhelming majority of container ships, oil tankers, freighters, and cruise ships run on some type of marine fuel oil (MFO). IMO 2020 reduces the limit for sulfur in these fuels to just 0.5 percent, down from 3.5 percent.
International sea transportation generates about one billion metric tons of carbon dioxide each year, which corresponds to 3 percent of all fine particulate matter created by human activity. In light of this, IMO 2020 is an important step towards achieving a better ecological balance sheet for the industry. As a logistics provider, DACHSER does not operate its own ships, but works with major shipping lines like Maersk, Hapag Lloyd, and others.
In the future, these companies will have a number of more environmentally friendly options available to them. For example, they may choose to continue using heavy oil but also install special exhaust gas cleaning systems (scrubbers). Or they may go for a cheaper and more technically feasible option, which is to switch to alternative fuels such as liquefied natural gas (LNG), very low sulfur fuel (VLSF), or marine diesel oil (MDO) sein. The relevant country’s port authority is responsible for compliance with IMO 2020 and can check this with a detector and the ship’s logs. Violators will be subject to fines, ship detention, or even imprisonment.
DACHSER fuel cost model
Regardless of what option shipping operators choose, IMO 2020 poses huge challenges for their industry. Costs will go up, market share may shift among the various sectors (project cargo shipping vs. container ships, bulk carriers, etc.), to say nothing of the expected impact on refineries and global oil markets. Nevertheless, the shipping lines are rising to the challenge—not only because they have to, but because they are pushing themselves to achieve a better ecological balance sheet. Many carriers have already developed models that allow their customers to calculate fuel costs and allocate them to their sources more accurately.
“Naturally we, too, are interested in finding the most sustainable way to handle our transports,” says Rolf Mertins, Head of Global Management Ocean at DACHSER. “At the same time, we want to offer our customers scheduling reliability. That’s why, based on collaboration with our partner carriers, we’ve developed our own fuel cost model, the DACHSER Bunker Adjustment Reference Floater (DBAF).” Replacing the Standard Bunker Factor (SBF), the DBAF is calculated based on the fuel prices of all relevant trades and is intended to ensure that customers’ fuel-related costs are covered irrespective of the carrier option.
Brexit: Important information for ASL customers
We face the possible event that the United Kingdom will leave the European Union by the end of October 2019. This will affect shipments from and to the UK and delays are to be expected. Reasons are amongst others that a higher percentage of shipments has to be processed by customs authorities and that European shippers might switch to Air Freight to avoid border controls. We expect delays particularly for shipments that do not move into the UK directly or out of the UK directly but via continental Europe. For example if Sea Freight shipments are unloaded in Rotterdam and then forwarded to the UK via truck and ferry:
- Fiscal representation in continental Europe will no longer be possible for goods to the UK. Instead, a transit procedure must be opened.
- The expected problems in Calais/Dover will cause delays in the delivery of goods to the UK.
- Incoterms for subsequent deliveries from the EU to the UK may also have to be converted if necessary, as costs for customs clearance have to be included.
Therefore we strongly suggest to ship directly to the UK whenever possible, at least for some time following the Brexit until things clear up.
In addition to that, you can also find our “Brexit checklist” here.
Plan ahead for the Golden Week holidays in China
China celebrates its National Day on October 1, followed by a week-long holiday. During the Golden Week from October 1 to 7, many businesses will be closed; factories and production sites will stop their operations. Some of them may resume work later than the official holidays.
Therefore, the pre-holiday period is busy for logistics and transportation, as factories tend to speed up their production before the holiday starts. In terms of air and sea freight transportation, space will be getting tight; trucking services will also be in a great demand.
It is important to plan ahead in order to keep your supply chain uninterrupted.
- Impact on sea freight
Most of the sea freight carriers have blank sailings not only during the Golden Week period, but also before and after the holidays to adjust their services in accordance with the weak market demand.
Some carriers implement westbound blank sailings as early as week 39. In general, there are blank sailings in week 40 and 41; sailing schedule gradually resumes normal in week 43. It is suggested to place your booking as soon as possible to avoid additional cost and to secure space. Please be aware of the booking cut off time.
You are welcome to get in touch with your DACHSER representative for updates on particular routes and discuss your planning.
- Impact on air freight
During the holiday period, air freight operations in local branches will be either closed or operating with very limited manpower.
For air import, only pre-booked shipment will be handled, please arrange the arrival date as early as September 25 in order to have enough time for customs clearance.
For air export, air freight space will be very tight and shipping equipment will be in great demand during the pre-holiday period. Please confirm with your local DACHSER representative for a precise cut off time.
- DACHSER Branches in China
DACHSER branches in China will be closed from October 1 to 7, and resume work on October 8.
If you have urgent shipment or wish to discuss any questions, please feel free to contact us.
DACHSER appoints Yves Larquemin as Managing Director Far East North
DACHSER has established a new Far East North business area across North China and Korea to optimize resources and provide increasingly efficient services to its customers. Helming the region is Yves Larquemin, who assumed his new role as Managing Director Far East North on June 1, 2019. Bringing decades of experience, the industry leader will drive growth across the region. He reports to Edoardo Podestá, Managing Director the DACHSER Air & Sea Logistics Asia Pacific Business Unit.
Brexit checklist - what should you watch out for?
What should DACHSER customers pay attention to in the case of a hard Brexit?
Delays when it comes to border crossing would be a major challenge in the case of a hard Brexit - the other would be the new bureaucratic burden of goods traffic with Great Britain. First and foremost, longer waiting times through border controls and customs clearance of all goods should be expected under WTO rules. For companies that send shipments to and from the UK, we have summarized them in our Brexit checklist that can be downloaded below:
DACHSER Chile opened a new Regional Office in Santiago to accommodate business growth
Due to the continuous growth of its operations, DACHSER recently expanded its Chilean regional office in Santiago. The city is one of the most important export hubs in the region. With the move to the new location, in the municipality of Las Condes, DACHSER places itself in a strategic position within the city, close to companies from many sectors that are key for Chile’s economic growth.
The International Chamber of Commerce (ICC) will release new Incoterms 2020 around the 10th of September, providing certainty and clarity to businesses trading across borders everywhere. The new Incoterms will be effective as of January 1st, 2020.
Every 10 years, the International Chamber of Commerce evaluates and revises the International Commercial Terms, better known as Incoterms, as a means of creating greater uniformity and effectiveness across the shipping industry. The latest version, Incoterms 2010, will stay in effect until January 2020.
What does "Incoterms" stand for?
It is an acronym standing for international commercial terms. Incoterms is a trademark of the International Chamber of Commerce, registered in several countries.
The Incoterms rules feature abbreviations for terms, like FOB (“Free on Board”), DAP (“Delivered at Place”) EXW (“Ex Works”), CIP (“Carriage and Insurance Paid To”), which all have very precise meanings for the sale of goods around the world. These terms hold universal meaning for buyers and sellers around the world.
The main Incoterms changes that are being considered are as follows:
The removal of FAS (Free Alongside Ship) as it is being used infrequently, separating FCA (Free Carrier) into two separate Incoterms, one for land delivery and one for maritime delivery and the committee is also considering bringing back the terms FOB (Free on Board) and CIF (Cost, Insurance, Freight), instead of the FCA and CIP (Cost and Insurance Paid to) used for non-container shipments. There is also a debate about the creation of a new Incoterms called CNI (Cost and Insurance) to bridge the gap between FCA and CFR/CIF (Cost and Freight/Cost, Insurance, Freight). Currently, FCA includes the cost of international insurance on account of the seller-exporter, while CFR/CIF does not include the cost of freight. And lastly, to alleviate questions surrounding the party responsible for paying Customs fees, the ICC will evaluate the creation of 2 Incoterms to replace DDP (Delivered Duty Paid).
Other issues and updates being evaluated during this round include:
- Transportation security
- Regulations on transportation insurance
- Relationship between the Incoterms and the International Sale Contract
We will provide another update once the official Incoterms 2020 rules have been announced by the ICC. Please contact us if you have any questions.
Introducing DACHSER Brazil
Since 2009 DACHSER Brazil has developed into one of the leading players in the local logistics market for air and sea transports in Brazil.
Hurricane Dorian Update
Slowly moving from the Bahamas, Dorian’s wind intensity has lowered to a category 2 hurricane. The hurricane might have significant, damaging impact from Florida's Atlantic coast to parts of Georgia, South Carolina, North Carolina and possibly southeast Virginia this week.
A hurricane warning and a storm surge warning have been issued for parts of Florida's east coast. These warnings have now also been extended into Georgia and South Carolina. Impacts will worsen along Georgia, South Carolina coasts Wednesday, September 4. Peak impacts will arrive in North Carolina and southeast Virginia Thursday, September 5 into Friday, September 6.
- Wilmington, NC: Port will be closed September 4.
- Charleston, SC: Port will be closed September 4 and September 5.
- Savannah, GA: Port will be closed on September 3 and September 4.
- Jacksonville, FL: Terminals remain closed to all commercial traffic for the duration of Hurricane Dorian.
- Miami, FL: Ports are closed to vessels and shore-side operations.
Miami airport is currently operational and Ft. Lauderdale airport re-opened at noon today.
Our DACHSER offices in Miami and Plantation, FL will remain closed today and will re-open tomorrow.
For information on Tropical Storm Dorian progress and hurricane preparedness, please visit the National Hurricane Center's webpage.
We will continue to monitor the developments and will provide updates. Please contact your local DACHSER representative if you have any questions.
Hurricane Dorian expected to strengthen to a category 4 hurricane
Dorian was upgraded from a tropical storm to a hurricane as it hit the Virgin Islands on Wednesday. Currently a category 2 hurricane, the latest forecast said Dorian could be a category 4 hurricane with winds of 130 mph when it arrives in Florida. State of emergencies were declared for Florida and 12 counties in Georgia.
Hurricane Dorian is expected to affect all Florida seaports on the Atlantic side. Below the ports that are currently affected:
- Port Condition WHISKEY and US Coast Guard expected to change to YANKEE on Friday, August 30.
- South Florida Container Terminal - will close at noon, Friday, August 30 for vessel operations.
- POMTOC’s gate will be closed Friday, August 30 to prepare the terminal for Hurricane Dorian.
- Port Condition WHISKEY – expected to be advanced to YANKEE Friday, August 30.
Jacksonville and Tampa:
- Port Condition WHISKEY – still too early for a decision on port closure.
Florida airports are monitoring the path of the hurricane closely, but have not announced any closures yet.
For information on Tropical Storm Dorian progress and hurricane preparedness, please visit the National Hurricane Center's webpage.
We will continue to monitor the hurricane and will provide updates. Please contact your local DACHSER representative if you have any questions.
DACHSER at USC Marshall's 7th Annual Global Supply Chain Excellence Summit
Flights cancelled due to demonstration in Hong Kong International Airport
There is a massive demonstration taking place at Hong Kong International Airport on Monday, August 12.
The aviation authorities announced that all remaining flights out of Hong Kong after 4pm local time on Monday are cancelled. According to the airport authority, operations are seriously disrupted by the public assembly.
Road transportation to the airport is also experiencing heavy traffic and there might be possible road closures.
We are sorry for the inconvenience caused. If you have urgent shipment please get in touch with your DACHSER representatives.
Typhoon Lekima causes service disruptions in East Asia
Super typhoon Lekima has brought major impact to the northern part of Taiwan and the eastern coast of China since August 9, local time.
Lekima made landfall near Shanghai in the early morning on August 10. Over the weekend, the storm brought heavy downpours, strong winds, flooding and landslides to coastal areas of seven provinces in China from Fujian to Jiangsu, including Shanghai city.
While some of the affected areas are still suffering from heavy rains and flooding, land transportation is disrupted. At the same time, seaport operations are disrupted and hundreds of flights are postponed or cancelled. Please expect shipment delays due to the adverse weather conditions.
We are sorry for the inconvenience caused. If you have any questions, please contact your local DACHSER representatives.