Episode 1: Incoterms 2010 : EXW, FOB, CFR, DAP and DDP - Worldcraft Logistics

welcome to our first video my name is Jimmy I'm Nadia I work in the single entry department what I do I do a lot how people from all over the world and get their load here and then you know me or many of those people on Facebook meet me because I help answer many questions on Facebook for eBay sellers, Amazon sellers or importers, how to bring their cargo from China and from us. In this video we will talk only about business terms, what they mean, what they mean. do what are they for yeah right yeah that's right well business terms there are a lot of them right there are about 15 business terms available so today 9009 we will go over five business terms that are mainly used let's go to the first one .

X W so exw means e my warehouse picks it up and does all the transportation to the US. I don't do anything. I just know that my mug, that's what it is deliver in this cup of 10,000 either to the airport like when you say that if I am somewhere in Shanghai, I would deliver to the Shanghai airport or a Shanghai Oceanport terminal and from that point Nigel would take care of all the transport from the port of the airport to the US. What about CFR? CFR is cost and freight. So if Nigel was in the US and located somewhere in Los Angeles, let's say it is my responsibility to transport the cargo from my warehouse to the terminal or go by sea. or by air to the port of Los Angeles and once it arrives to the port of Los Angeles, Nigel is responsible for taking care of the report at the airport or in the ocean and delivering it new to the warehouse, so I assume yes, sir, I assume all responsibilities and practically transfer. of responsibilities but a transfer of responsibilities true, what about AP d AP d AP?

A good example of D ap is like FedEx DHL and UPS, so as a seller, I study the product and deliver it to your door, like let's say Nigel's address is one. two three laverne avenue, so it is my responsibility to deliver the cargo from my warehouse to his warehouse, but Nigel will pay the customs clearance part and the duties and taxes. He will have to find his own customs broker and pay the duties in the US. My job. It's just transportation, that's why it's called on-site delivery. What about DDP? DDP means that as a seller, I take full responsibility for the freight.

I transport the load from my warehouse to the nitro warehouse and Nigel literally does nothing as if he just sits there. He's like Jimmy, when the cargo arrives and I do all the transportation. I will handle the customs clearance in the US and also pay the tax with nacho, but many sellers in China don't want to do that. do DDP DDP is because there is too much responsibility because if there is a customs clearance problem or Nigel does not provide the documentation, the car will be stuck if the car is stuck this additional fee, but in an additional fee they ask me sellers responsible for it and Nigel. he just kicks or he's just lazy and you don't know anything, yes that's why China, they or any seller who don't like to do DDP, got it right, it's those few trade terms, just explain to me what is better for many of they. yes it will be or what um in the trade industry many people prefer to do F will be if you have Alibaba and you look at all the sellers on Alibaba, they do f OB or but exw or e^x work It is preferred because you have more control over your cargo, so you can work with exw or f OB because you have more visibility on your cargo because when you do the other trade term your forwarder is responsible for shipping you are good just forwarder or your manufacturer is good at manufacturing not good at the shipping, so why do you give your cargo to a non-professional company to take care of your good and also you would like to say if Nigel is with you or would you sell the product on Amazon and run out of money?

I don't think you would reach out to your supplier and say, "Hey, I'm running out of money now that I'm selling on Amazon," they might say, "Okay, well, I want to start selling on Amazon." You would talk to your faithful and say "Hey, me." I'm running out, can you calculate the transit time for me? You know, ocean, hair, it's more communication, more visibility on your cargo, Mormon trophies, more control and in any business you want to have more control over your product and if you sell an Amazon wholesale tray, that's your bread and butter to control your product, when should you start using freight forwarding?

Do you want to start using a dummy folder once your load reaches two hundred and seventy-five more kilos or one point six five more cubic meters? Anything below that number you just want to stick with DHL, FedEx and UPS, anything above that number, you can start traveling by air on the ocean, why did you mention FedEx UPS things like why not go directly to cargo transportation, is it cheaper or what, say, for example? You want to send fifty kilos, right? If you're going to ship 50 kilos with a faith edge, a fake Florida would charge me mom like $200 for this service fee, customs clearance, all this paperwork, $200 and if you apply just the service fee to 50 pounds. 50 kilo product, you're already paying $4 per kilo just for the service, not the air freight yet, so you know the people.

I still like that people use it. You know FedEx UPS DHL, but FedEx UPS and DHL their rate is $7 per kilo compared to our rate. right now it's about $3 to $4 per kilo, so I wanted to say that once you hit a thousand kilos, for example, we would charge, say, $4,000 for the airframe and $200 for the fire service, for example, but if you used DHL, they will charge you. $7,000 right off the bat because then you see Mike, yeah, well we're not making this video short, we're going to start another video very soon, so I hope you know that you subscribe to our channel and we can't wait to do so. more videos and yes, of course, I also hope that this video was informative, I just hope that you got what you were looking for and that you have other questions or want to learn about other forms of freight transportation or any of your air movement needs, just sit down Feel free to comment below or contact us at.

We'll put the information below, so that's okay, thank you all.