1. Purchase Methods Main : FOB or C&F/CIF

2. CIF/C&F Cost, Insurance, Freight Cost & Freight Shipping Line Selected by Seller Seller can Manipulate delivery to suit his Requirement Buyer at the mercy of Shipping line

3. FOB Free On Board Shipping Line Selected by Buyer Delivery controlled By Buyer’s Freight Forwarder Choice of Shipping Line with buyer Ex-Works

4. Shipment Types Types of Shipment Air Freight Container FCL/LCL Break Bulk LinerTramp

5. Container FCL (Full container load) FCL (Full container load) LCL (Less than container load) LCL (Less than container load) Always on liner terms Always on liner terms

6. Types of Containers 20’ & 40’ 20’ & 40’ Standard container 20’ x 8’ x 8.5’ or Standard container 20’ x 8’ x 8.5’ or 40’ x 8’ x 8.5’ (Dimensions same for all types) Open Tops Open Tops Flat Racks Flat Racks Side doors Side doors

7. Breakbulk : Liner Vessels Fixed Schedules Fixed Schedules Fixed routes Fixed routes Cargoes can be booked without commitment Cargoes can be booked without commitment Flexibility in shipment planning Flexibility in shipment planning Calls major ports only Calls major ports only Size of the shipment not critical Size of the shipment not critical

8. Breakbulk : Tramp Vessels No fixed schedule No fixed schedule Vessels call subject to cargo inducement Vessels call subject to cargo inducement Need minimum quantity per shipment Need minimum quantity per shipment Cargo booked on firm basis. Not delivering the cargo will attract dead freight. Late delivery of cargo will attract detention. Cargo booked on firm basis. Not delivering the cargo will attract dead freight. Late delivery of cargo will attract detention. Can call any port as required. Can call any port as required.

9. Bill of Lading Freight Prepaid Freight Prepaid Freight to pay Freight to pay Ocean Bill of Lading Ocean Bill of Lading Forwarder’s bill of lading Forwarder’s bill of lading “Clean on Board” “Clean on Board” LC requirements LC requirements

10. Landed Cost Purchase Price (FOB) Purchase Price (FOB) Freight Freight Insurance Insurance Local Transportation Local Transportation Hidden Costs ? Hidden Costs ?

11. After arrival what ?? Clearance TranshipmentBill of EntryBond

12. ? Questions?