Primary Freight Inc., Global Chamber Los Angeles member that offers a complete range of global freight forwarding and logistics services hosted a very informative and entertaining session on Incoterms® today. Speaker Dan Gardner, President of Trade Facilitators, Inc., a recognized resource on the topic, was entertaining and kept the audience engaged as he covered the history and evolution of this, unappreciated and important topic.
The audience included members of local academia, financial institutions, and industry that participate in Global Logistics. The illustrations used by Mr. Gardner, both verbal and visual, were simple and clear - stimulating questions, comments and sharing by the attendees. The "most important message", as stressed by Dan, is that Incoterms® are International Sales Rules that govern 3 critically important considerations:
- At what physical point in a supply chain the risk of loss or damage to goods shift from seller to buyer
- At what physical point in a supply chain the responsibility for all transportation, customs clearance, duties and related charges shift from seller to buyer
- Responsibility between seller and buyer for execution of certain functional activities
Everyone came away from the session with a renewed understanding of Incoterms® and how important such an apparently simple part of the transaction can be. The proper application of which can avoid conflict, confusion, and cost - because, as Dan said "everything is alright, until it isn't" and that is when the Incoterms®come into play to spell out whom is responsible for what.
Thanks to John Brown, President of Primary Freight, and his team for arranging this session and bringing in Mr. Gardner to share his experience with us!