Relaxation in Europe: Update of the current loading restrictions

Incoterms 2020

The International Chamber of Commerce (ICC) will soon release the new Incoterms 2020, providing certainty and clarity to businesses trading across borders. 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:

• The removal of FAS (Free Alongside Ship) as it is being used infrequently;
• Separating FCA (Free Carrier) into two separate Incoterms: one for road delivery and one for maritime delivery;  
• 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.
• 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.

Russia – Ukraine conflict: Impact on DACHSER’s global air & sea freight operations

We would like to inform you about the impact of the Russia – Ukraine conflict on international air freight, sea freight and rail operations. Moreover, we would like to share with you which measures we had to take to safeguard supply chains as much as this is possible.

We are suspending any bookings from or to the Ukraine until further notice. Furthermore, we can no longer accept bookings on our rail services between Asia and Europe. The same booking stop applies to intercontinental trucking between Asia and Europe whenever such shipments would be transiting Russia, Belarus or Ukraine. The reason for these measures is that we can no longer guarantee the safe transit of our customers cargo via the aforementioned countries.

We still accept bookings originating from or destined to Russia and Belarus provided that airlines and shipping lines continue to provide capacities on these routes. We are observing first carriers and airlines suspending their activities related to transportation to/from these countries. Needless to say, that bookings to/from Russia and Belarus have to be fully compliant with the most recent governmental sanctions imposed on these countries.

Besides these specific measures we do expect additional implications on our operations. The conflict region respectively the countries involved in the conflict have great significance in the international oil and energy markets. This is already causing some very dynamic developments of oil prices and therefore oil related surcharges such as BAF and fuel surcharges. We will closely monitor further developments and keep you informed. Furthermore, we are already seeing what could be the onset of a capacity crunch in the airfreight market, as European airlines are banned from Russian airspace and Russian airlines are banned from European airspace.

As of now, it is not foreseeable how long this situation will last or how the situation will develop. We will continue to make every effort to provide solutions for our customers and keep you abreast of future developments to ensure the continuation of your international supply chains.

Our teams worldwide will be in touch with you but please do not hesitate to reach out to your DACHSER contact person to evaluate your particular situation and to discuss further arrangements for your air freight, sea freight & rail shipments.

National strike in France – update week 4

During the past weeks, massive strikes against a planned pension reform have paralyzed public transport in France. The strike is still going on this week (week 4).

French ports, which are already impacted by days of strike, are getting congested. Alternative options like Antwerp, Genoa or Barcelona are getting congested as well, therefore delays on bookings and pick up/delivery with those ports are expected.

Here is an overview of the planned strike activity in the French ports:

• Dunkerque: dockers/stevedores 23/01 & 24/01; tugboats 22/01 to 25/01 until 6 am
• Le Havre: dockers/stevedores 22/01 to 25/01 until 6 am; tugboats 24/01 to 25/01 until 8 am
• Montoir: dockers/stevedores 22/01 to 25/01 until 6 am; tugboats 21/01 to 24/01 until 9 am
• FOS: dockers/stevedores 22/01 to 25/01 until 6 am; tugboats 20/01 to 23/01 until 9 am

Pick-up and delivery by rail would be also difficult. Air freight is not concerned so far, but we will keep you informed about that.

Get assured that our operational teams will do their utmost to minimize the effects of the strike.

In case of any questions, please do not hesitate to contact your responsible contact person in the respective DACHSER branch.