FREQUENTLY ASK QUESTIONS
We had tried to compile different questions and their answers to help our clients and suppliers with any queries and understanding requirements to trade through Riolco.
Who handles shipping and logistics?
Who pays for shipping and logistics services for the product
Shipping and logistics structure depends on agreement with supplier and buyer. Since there are different incoterms used in the industry for shipping and trading services. We are describing few below to help you understand different options:
CFR: Cost and Freight Services – “Cost and Freight” means that the seller must pay the costs and freight necessary to bring the goods to the named port of destination but the risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time the goods have been delivered on board the vessel is transferred from the seller to the buyer when the goods pass the ship’s rail in the port of shipment.
The CFR term requires the seller to clear the goods for export.
This term can only be used for sea and inland waterway transport. When the ship’s rail serves no practical purpose, such as in the case of roll-on/roll-off or container traffic, the CPT term is more appropriate to use.
Who is responsible for goods?
Who is responsible for goods
If the contracted incoterm between supplier and buyer is CIF, that means shipping company handles insurance for the container or goods on board. If anything happens to good, then shipping company would cover the cost.
However in CFR, the title transfer occurs at port of loading which means that the seller is not responsible for goods once they goods have been loaded into a container to be shipped to importer.
Can my shipment be tracked?
Can my shipment be tracked
Yes, almost all of our shipping partners offer shipment tracking. The average time for a shipment to arrive in destination country varies from 3 to 30 days depending on the destination country port where the goods will be delivered.
What kind of container can you ship?
Is the Cargo insured during shipping?
Shipping Companies provide insurance on cargo when shipping. We can buy insurance for the cargo if requested and contracted by buyer.
Incoterm:
CIF: “Cost, Insurance and Freight” means that the seller has the same obligations as under CFR but with the addition that he has to procure marine insurance against the buyer’s risk of loss of or damage to the goods during the carriage. The seller contracts for insurance and pays the insurance premium.
The CIF term requires the seller to clear the goods for export.
What are different payment methods which can be used for a trade?
What are the different payment terms for the trade
Different methods of payment used in commodity trading between buyer and supplier are:
1. Wire Transfer – Buyer trasnfers money directly into trader’s or supplier’s account after the deal has been contracted.
2. LC (Letter of Credit) – Buyer’s bank can issue letter of credit to seller’s bank for a trade which when completed, buyer’s bank would pay the seller bank and seller bank would pay the seller. This type of payment is mainly used when doing bulk commodity trading.
Please contact us for any further questions.