Know the shipping terms as well as the shipper’s or buyer’s responsibilities!
What is shipping?
Shipping has many definitions, but shipping a car is what this article will explain. Shipping a car is the process of transporting the vehicle by sea from the seller’s position to the buyer’s destination using a vessel or ship.
Types for Shipping
1.Roll On/Roll Off(RORO is the shipping method used when the vehicle is driven on and off of the vessel or ship on the vehicle’s own wheels. 2.Container shipping is the shipping method that involves loading the car into a container for shipment by vessel.
As you can see, shipping a car can either be by container or RORO. Of course RORO is an easy method of shipping a car, but destination ports for this kind of shipping are few. Shipping by container means the car can be sent to almost any port in any country.
What is Freight Charge (Shipping Costs)?
It is the charge or cost paid to carriers for transporting goods/cargo to a specified destination. Freight charges can either be paid when the vessel reaches the specified destination or they can be prepaid to the carrier before the departure of the vessel.
Terms for Shipping a Car
CIF, C&F and FOB are the most common shipping terms
FOB (Free On Board) or (Freight On Board) is a shipping method where the seller (sender) is responsible for handling, loading and clearing the vehicle for export. The seller is also responsible for the vehicle until the shipping vessel’s arrival at the specified destination.
The buyer (receiver) pays for cost of the freight after its arrival at the port of destination, including unloading costs and costs to transport the vehicle from the port. This means the buyer assumes the risk of loss or damage to the vehicle from the time the shipment arrives at the port.
CIF (Cost, Insurance, and Freight) is a shipping method where the seller is responsible for paying all of the shipping costs, including marine insurance and freight, until the vehicle reaches its destination. The buyer is responsible for the costs incurred once the vessel reaches the destination port.
C&F (Cost, Freight)is a shipping method where the seller pays for the freight and other costs related to the shipping of the vehicle until it arrives at the specified destination.
What is marine insurance?
This insurance covers loss or damage to goods during the process of shipping a car across bodies of water. Damages to the car can come from external sources such as fire, boat collision, water damage, etc.
Choosing a reputable and reliable shipping partner is essential for shipping a car, but it can be hard sometimes if you are new to shipping cars overseas. There are numerous agent sites on the Internet today, making choosing one a confusing task.
The best method is to find a site that clearly states what it specialize in, and then ask if the agent handles shipping cargo from Japan to your country. If the agent says he has to check and will get back to you, walk away and find another agent since this is the sign of an amateur.