Shipping Cars overseas can be laborious and tricky. Among other things, you must choose the type of transport that suits your needs and your budget. You must also take into account several particularities linked to international conditions of sale (Incoterms), packaging, insurance, and customs.
Type of Transport
Following are the three types of shipping transports:
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Air transportation
Air transportation is the most expensive option. However, this type of transport offers advantages such as speed. In addition, the insurance and storage costs payable are lower and better inventory control is possible;
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Maritime transport
Maritime transport is mainly used for the transport of bulky items or bulk products and goods. It is the slowest type of transport. Rates vary depending on the number of containers required for shipping.
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Road and rail transport
As the road the system is highly developed in North America, road transport is the most used type of transport on this continent. Several trucking companies transport Canadian goods to the United States. The rates vary in particular depending on the loading of the trucks (full or partial);
International Sales Conditions
The international conditions of sale or incoterms (acronym of the English International Commercial Terms) are acronyms, acronyms, and abbreviations that correspond to standardized rules having been developed by the International Chamber of Commerce (in English only). If you want to move your vehicle, it is extremely important to be aware of these conditions.
The international conditions of sale serve to define the obligations relating to the delivery of the goods as well as the sharing of responsibilities between the seller and the buyer. Both parties are thus protected and there is no ambiguity when entering into the contract or agreement.
The international conditions of sale make it possible to specify in particular
- when the delivery is to be made;
- the moment from which the risk of loss or damage will be assumed by the buyer;
- the distribution of costs relating to the goods (transport, verification, packaging, insurance, etc.).
As an exporter, you are responsible for knowing the international conditions of sale.
Transport Insurance
When you ship products abroad, it is in your best interest to take out transport insurance, since you are largely responsible for your goods during their transport. International carriers do not assume full responsibility for goods during transport. It can sometimes even be required in a sales contract that you take out insurance.
Transport insurance is commonly called “maritime insurance”, even if in reality it covers transport by boat, plane, truck, and train.
The insurance covers four types of risk:
- Risks linked to disasters which may affect the transport vehicle (sinking, fire, flood, etc.);
- The risk of accident and other accidental risks which may affect the goods themselves (fall, crushing, breakage, etc.);
- Other risks which are beyond the seller’s control (theft, piracy, willful damage, etc.);
- Risks related to wars and political situations.
The types of cover mainly offered:
Special damage franc (FAP)
This is the most restricted type of cover. Protection is offered against total losses as well as partial losses suffered during transport in the event of a major event. The indemnities paid by the insurer are limited;
With damage (AA)
This type of cover offers better protection against partial losses;
Note that you are no longer responsible for your goods once the documents relating to the transfer of title deeds have been delivered to the foreign buyer.
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