Marine Trade Case Study

1102 Words5 Pages
1.0 Introduction Traditional export is governed by rules and regulations that ensure the fulfilment of successful transactions as well as the security of the involved parties. This paper focuses on foreign trade and particularly as it regards to marine transportation. The shipping/marine industry faces myriads of challenges when it comes to the delivery of services some of which include: delays due to natural causes, inadequate insurance cover, contractual loopholes due to the involvement of several parties, conflicts of interests, which dictate the choice of contract to be used and indemnity risk. The rules and regulations governing foreign export are both national and international some are shared, while others are distinct to specific…show more content…
and Ireland Manufacturing Supplies Co. made shipment Free on Board (FOB) at Port of Riga. However, the Ireland Manufacturing made advance payment prior to the listing, while the Ireland Manufacturing Supplies Co. did not. Consequently, both companies bore the risk of shipment and thus, loss of goods. This is because based on the FBO transaction, the seller accepts to place, at his or her own expense, goods ‘free on board’ the ship for the shipment of the buyer. This suggests that the seller is not liable for the loss or damages of the goods once the good are shipped and are on transit.2 In this case, both companies bear the cost of carriage, but the seller needs to ensure that the cargo conform to the…show more content…
used the CIF export transactions that gives the seller the responsibilities associated with arranging and shipping of the goods to the port of destination. The “Cost Insurance Freight” (CIF) contract indicates that the price includes the cost of the cargo, insurance and freight to the offloading point. However, a risk does exist for the Latvian Wood Co. as they have attempted to tender the Irish Pallets Co. with a commercial invoice identifying that the pallets fulfil the contract by a serial number, the policy insurance and a clean bill of lading, but the company is refusing to accept the document and delivery of goods. If this persists, then the Latvian Wood Co. will undergo a loss. This is because the seller sends the bill of lading and insurance policy plus the invoice for the total cost in order for payment to be made. If this does not happen a the process is considered a loss. The bill of lading and its delivery is crucial because it is considered a document of title under the English law. This means that the person who owns the bill of lading can receive, contain or dell the
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