LETTER - 'Incorrect Incoterms'

I refer to the article
headlined ‘Ship FOB –
avoid China import service
fee’ (FTW August 28,
2015).
In the article it is noted
that there is reference to
FOB and CIF. Taking into
consideration the fact that
most cargo from China is
containerised, these two
Incoterms rules are not
correct as they are not
suitable for containerised
cargo.
A more appropriate
rule would be FCA or
CIP. You might say what
is the difference? There is
a lot as with the two rules
which I have suggested the
passing of the risk occurs
when the cargo is handed
into the care of the main
carrier. This can occur when
the container is collected
from the seller’s warehouse
where the container has
been stuffed or when the
container is delivered into
the stack. With airfreight,
it occurs when the cargo is
delivered to the airline at the
airport of departure. With
FOB and CIF the risk
occurs when the cargo is
loaded and stowed on board
the vessel. The cargo in a
container is always handed
to the carrier before loading
on board.
Furthermore, the FOB
and CIF are definitely not
suitable for airfreight and
it is never possible for the
buyer to be present and to
be involved in the loading
of an aircraft. This is partly
due to the International Civil
Aviation regulations whereby
only accredited personnel
are permitted on the air side
of any airport.
It is a great pity that we
still have people using and
referring to Incoterms rules
which are inappropriate.
Alexander Robertson,
Robertson’s Cargo
Consultancy