{"id":10637,"date":"2024-02-02T14:01:26","date_gmt":"2024-02-02T10:31:26","guid":{"rendered":"https:\/\/www.ustuco.com\/types-of-international-contracts\/"},"modified":"2026-09-23T21:04:14","modified_gmt":"2026-09-23T17:34:14","slug":"types-of-international-contracts","status":"publish","type":"post","link":"https:\/\/www.ustuco.com\/en\/types-of-international-contracts\/","title":{"rendered":"Types of International Contracts"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>Familiarity with types of international cargo transportation contracts<\/strong><\/p>\n\n<p class=\"wp-block-paragraph\">In the realm of cross-border trade, the movement of goods without a clear legal framework can entail significant financial risks. International transport contracts clarify the relationships between the cargo owner (shipper), transport companies (carriers\/freight forwarders), and the consignee, while defining responsibilities, costs, and risks.<\/p>\n\n<p class=\"wp-block-paragraph\">In this article, we review the most popular and important types of international contracts in the logistics industry.<\/p>\n\n<p class=\"wp-block-paragraph\">1. Incoterms-based contracts<\/p>\n\n<p class=\"wp-block-paragraph\">Incoterms (International Commercial Terms), developed by the International Chamber of Commerce (ICC), specify the rights and obligations of the buyer and seller in the delivery of goods.<\/p>\n\n<p class=\"wp-block-paragraph\">The most important groups of Incoterms are:<\/p>\n\n<ul class=\"wp-block-list\">\n<li>Group E (EXW): Delivery of goods at the seller&#8217;s factory door (least responsibility for the seller).<\/li>\n\n\n\n<li>Group F (FOB, FCA): The seller delivers the goods to the carrier designated by the buyer.<\/li>\n\n\n\n<li>Group C (CIF, CFR, CPT): The seller pays the cost of transportation to the destination, but the risk of the goods passes after loading.<\/li>\n\n\n\n<li>Group D (DDP, DAP): Delivery of goods at the final destination with maximum responsibility of the seller.<\/li>\n<\/ul>\n\n<p class=\"wp-block-paragraph\">2. Carrier Contract and Forwarder Contract<\/p>\n\n<p class=\"wp-block-paragraph\">There are two main types of actors in transportation, with different types of contracts:<\/p>\n\n<ul class=\"wp-block-list\">\n<li>Carrier Contract: Direct undertaking of cargo transportation by private fleet (truck, ship or aircraft). Direct responsibility for the physical integrity of the cargo lies with the carrier. <\/li>\n\n\n\n<li>Forwarder Contract: The forwarder company acts as an intermediary and supply chain designer and is responsible for coordination, documentation, transit, and selection of the best carriers.<\/li>\n<\/ul>\n\n<p class=\"wp-block-paragraph\"><strong>3. <\/strong><strong>Legal documents and conventions that replace or supplement the contract<\/strong><\/p>\n\n<p class=\"wp-block-paragraph\">In international transportation, certain documents serve as a formal contract of carriage:<\/p>\n\n<p class=\"wp-block-paragraph\">+&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;-+&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;-+<\/p>\n\n<p class=\"wp-block-paragraph\">| Document \/ Convention | Application and description |<\/p>\n\n<p class=\"wp-block-paragraph\">+&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;-+&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;-+<\/p>\n\n<p class=\"wp-block-paragraph\">| Bill of Lading | Document of ownership of goods and official sea\/multi-way transport document |<\/p>\n\n<p class=\"wp-block-paragraph\">| CMR Convention | Legal Agreement of International Road Transport Document |<\/p>\n\n<p class=\"wp-block-paragraph\">| Air Waybill (AWB) | Airline Delivery Receipt (Non-transferable) |<\/p>\n\n<p class=\"wp-block-paragraph\">| Rail waybill (CIM\/SMGS) | Legal document for international rail freight transport |<\/p>\n\n<p class=\"wp-block-paragraph\">+&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;-+&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;-+<\/p>\n\n<p class=\"wp-block-paragraph\"><strong>Key points that should be included in the contract text<\/strong><\/p>\n\n<ol start=\"1\" class=\"wp-block-list\">\n<li><strong>Accuracy of product specifications and packaging conditions.<\/strong><\/li>\n\n\n\n<li><strong>Accurate determination of liability for insurance of goods and possible damages.<\/strong><\/li>\n\n\n\n<li>Specifying penalties for late delivery (Damages for Delay).<\/li>\n\n\n\n<li><strong>Dispute resolution authority and the laws governing the contract.<\/strong><\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>In the realm of cross-border trade, the movement of goods without a clear legal framework can entail significant financial risks. International transport contracts clarify the relationships between the cargo owner (shipper), transport companies (carriers\/freight forwarders), and the consignee, while defining responsibilities, costs, and risks. <\/p>\n<p>In this article, we review the most popular and important types of international contracts in the logistics industry.<\/p>\n","protected":false},"author":8,"featured_media":10433,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[85],"tags":[],"class_list":["post-10637","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-customs-laws-and-concepts"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Types of International Contracts - Unique Shipping Tir Universal CO<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ustuco.com\/en\/types-of-international-contracts\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Types of International Contracts - Unique Shipping Tir Universal CO\" \/>\n<meta property=\"og:description\" content=\"In the realm of cross-border trade, the movement of goods without a clear legal framework can entail significant financial risks. International transport contracts clarify the relationships between the cargo owner (shipper), transport companies (carriers\/freight forwarders), and the consignee, while defining responsibilities, costs, and risks.  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