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Incoterms 2020

It is an acronym standing for international commercial terms. Incoterms is a trademark of the International Chamber of Commerce, registered in several countries.

The Incoterms rules feature abbreviations for terms, like FOB (“Free on Board”), DAP (“Delivered at Place”), EXW (“Ex Works”), CIP (“Carriage and Insurance Paid To”), which all have very precise meanings for the sale of goods around the world. These terms hold universal meaning for buyers and sellers around the world.

The main Incoterms changes that are being considered are:

• The removal of FAS (Free Alongside Ship) as it is being used infrequently;
• Separating FCA (Free Carrier) into two separate Incoterms: one for road delivery and one for maritime delivery;  
• The committee is also considering bringing back the terms FOB (Free on Board) and CIF (Cost, Insurance, Freight), instead of the FCA and CIP (Cost and Insurance Paid to) used for non-container shipments.
• There is also a debate about the creation of a new Incoterms called CNI (Cost and Insurance) to bridge the gap between FCA and CFR/CIF (Cost and Freight/Cost, Insurance, Freight). Currently, FCA includes the cost of international insurance on account of the seller-exporter, while CFR/CIF does not include the cost of freight.
• Lastly, to alleviate questions surrounding the party responsible for paying Customs fees, the ICC will evaluate the creation of 2 Incoterms to replace DDP (Delivered Duty Paid).

Other issues and updates being evaluated during this round include:

• Transportation security
• Regulations on transportation insurance
• Relationship between the Incoterms and the International Sale Contract

We will provide another update once the official Incoterms 2020 rules have been announced by the ICC. Please contact us if you have any questions.

Coronavirus pandemic: Impact on operational processing in the USA

As can already be seen from various press releases, the US authorities have enforced a ban with effect from 13 March 2020, 23:59 h, which prevents all entries from Europe into the United States, in addition to the already existing entry ban for visitors from several Asian countries.

This leads to a large number of flight cancellations on routes between Europe and the United States. However, the affected passenger routes also represent a significant portion of the available cargo capacity and therefore there is a massive impact on available cargo space and freight rates.

Our team of experts continues to work hard on alternative options and routes that will allow us to carry urgent cargo and we are committed to providing our customers with priority access to available capacity. As with the successful implementation of our charter program between China and Germany, we are now exploring similar solutions for transportation between Germany and the USA.

Our teams around the world will stay in touch with you, but please do not hesitate to get in touch with your contact at the respective DACHSER branch to discuss your particular situation and make further arrangements for your freight shipments.

Latest update on DACHSER Air & Sea Logistics operations

With this update DACHSER would like to inform about the current DACHSER Air & Sea Logistics operations across the regions APAC, EMEA and Americas. In the attached document (see download below) it is listed whether a country organization of DACHSER is operational or, if only limited or not at all, why this is the case. Since the situation in the countries may change rapidly, the attached document will be updated on a regular basis and published on our website.

We sincerely regret any inconveniences caused to our customers due to the pandemic. At DACHSER, we have contingency measures in place and will offer our customers the best alternative solutions to keep the supply chain running. Anyhow, the situation at ports, airports or customs authorities might cause delays. Furthermore, the capacity situation on the global airfreight market is very tense as there are basically no passenger flights operating at the moment.

At the same time, DACHSER has installed strict hygiene measures (e.g. home office) to ensure a safe working environment and to do our part in stopping the spread of the virus. DACHSER is trying to keep the impact of these measures as low as possible, however, together with the official measures by the governments, the precautions may lead to some delays in the operations.

In case of any questions and/or queries, please feel free to contact your local DACHSER representative.

Increased number of phishing e-mails to DACHSER customers and partners

Customers and partners of DACHSER currently receive a large number of fake emails, so-called phishing mails, on behalf of the logistics service provider. In this, the fraudsters attempt to target information from customers via an attached PDF file marked as a DACHSER form.