Contents:- Main terms: quality, quantity, packing, price, delivery, payment- General terms: insurance, inspection, arbitration, force majeure*The following terms can be used only for sea or inland waterway transport: FAS, FOB, CFR, CIF, DES, DEQ*The following terms can be used for multimodal transport:EXW, FCA, CPT, CIP, DAF, DDU, DDP*Six main international trade termsFOB, CFR, CIF, FCA, CPT, CIPThe quantity of the goods refers to the weight, number, length, volume, area, capacity, etc. which are indicated by different measuring units.Any business deal consists of a certain quantity of goods supplied by the seller and a certain sum of money paid by the buyer. Without a certain quantity of goods, any business deal would be groundless.1. Weight Calculation- By gross weight- By net weightNet weight ＝ gross weight － tare weight- By conditioned weightThis refers to the kind of weight derived from the process, with which the moisture content of the commodity is removed and standardized moisture added both by scientificmethods.- By theoretical weight- By legal weight2. More or Less ClauseThe more or less clause is a clause that stipulates that the quantity delivered can be more or less within certain extent (range). The most commonly used way is allowing some percentage more or less.1) Nude Cargo2) Cargo in Bulk / Bulk Cargo3) Packed Cargo◆Shipping Packaging:- Single piece packaging - Collective packaging: ContainerFlexible container; Pallet◆Neutral Packaging◆Packing of Nominated Brand◆Shipping mark- Name or code of destination;- Code of consignee or consignor;- Piece number, serial number, contract number or license number.◆Oringinal mark◆Indicative mark◆Warning markFlexible pricing- The pricing time and the pricing method are specified.- Only the pricing time is fixed.Partial fixed price and partial unfixed priceFloating pricing direct-expressing price; indirect-expressing priceI. Ocean TransportII. Railway TransportRailway transport is mainly divided into: Domestic Railway Transportation- Railway transport at home- Railway transport to H.K. and Macao International Through Railway TransportScheduled airliner Charted carrier Consolidation Air Express ServiceParcel Post Transport International Multimodal Transport Container TransportFCL=Full Container Load LCL=Less Than Container Load CY=Container Yard CFS=Container Freight Station◆FCL／FCL or CY／CY◆FCL／LCL or CY／CFS◆LCL／FCL or CFS／CY◆LCL／LCL or CFS／CFS American land bridge Siberian land bridge The New European- Asia land bridgeI. Bill of lading(1) shipped on board B/L; received for shipment B/L(2) clean B/L; unclean/foul B/L(3) straight B/L; bearer/blank B/L; order B/L(4) direct B/L; transshipment B/L; through B/L(5) long form B/L; short form B/L(6) liner B/L; charter party B/L(7) advanced B/L; anti-dated B/L; stale B/L(8) Other forms: original B/L, copy B/L, container B/L, on deck B/L, …I. Sea WaybillIII. Road Waybill & Rail WaybillIV. Air WaybillV. Multimodal Transport DocumentSection Three Terms Of TransportationTime of DeliveryWays of stipulating the time of shipment:- Stipulate the definite time of shipment;- Stipulate a fixed time;- Stipulate a fixed period of time;- Stipulate the goods shall be shipped within … days after receipt of L/C;- Stipulate the goods shall be shipped in the near future.UCP600 stipulates:*“first half of a month ” : 1st - 15th*“second half of a month”: 16th - the last day of the month*“beginning” of a month: 1st - 10th*“middle ” : 11th- 20th*“end ”: 21st - the last dayPort of Shipment & Port of DestinationWays of stipulating the port of shipment and destination:- Stipulate only one port of shipment and one destination;- Stipulate at least two ports of shipment and destination;- Stipulate optional ports.Partial shipment & TransshipmentSection Four Procedure of ShipmentSection One Marine InsuranceParties involved↘Insured / Insurant↘Insurer / Underwriter↘Claimant / Applicant↘Insurance Agent↘Insurance BrokerFundamental principles↘The insurable interest principle↘The utmost good faith principle↘The indemnity principle↘The proximate principle↘The subrogation principle↘The share principleSection Two Risks, Losses and ExpensesRisksPerils of Sea: Natural Calamities; Fortuitous AccidentsExtraneous Risks: Common Extraneous Risks; Special Extraneous RisksLossesTotal loss: actual loss; constructive total lossPartial loss: general average; particular averageCalculation: Total GA loss = the sum of sacrifices + the extraordinary expensesTotal GA contributory value = the actual value of the property saved + GA lossGA Percentage = Total GA loss / Total GA contributory value×100%GA Contribution = Contributory Value ×GA percentageExpenses- Sue and labor charges- Salvage charges- Extra chargesSection Three Marine Insurance CoverageBasic risks: FPA (Free from Particular Average)WPA (With Particular Average)AR (All Risks)Additional Risks: General Additional RisksSpecial Additional RisksResponsibilities and time limit of insuranceW / W Clause According to the practice of international insurance, basic coverage adopts the Warehouse to Warehouse Clause (W/W Clause), which means the insurance responsibilities are in effect from the consigner’s warehouse or storage to the consignee’s warehouse designated in the insurance policy, including the course of normal transportation in the sea, land, fresh water or barge.But it cannot exceed 60 days after the commodity’s unloading from the ship.If the goods need to be transshipped to the destination that is not the one in the insurance within 60 days, the insurance will stop when transshipment begins. Exclusion of basic coverageAccording to OCEAN MARINE CARGO CLAUSES of P.I.C.C., there are 5 exclusions: ↘Loss or damage by the intentional act or fault of the insured;↘Loss or damage under the liability of the consignor;↘Loss or damage from the inferior quality or shortage of the insured goods prior to the attachment of this insurance;↘Loss or damage from normal loss, inherent vice or nature of the insured goods, loss of market and/or delay in transit and any expenses arising therefrom;↘Risks and liabilities excluded by the ocean marine cargo war risks clauses and strike, riot and civil commotion clauses of C.I.C.Other types of cargo insurance◆Overland transportation cargo insurance◆Air transportation cargo insurance◆Parcel post insuranceSection Four Coverage of Marine Cargo Insurance of ICC London Insurance Institute Cargo Clauses was first made in 1912. The newly revised London Insurance Institute Cargo Clauses in 1982 include 6 kinds: ↘Institute Cargo Clause A;↘Institute Cargo Clause B;↘Institute Cargo Clause C;↘Institute War Clause-Cargo;↘Institute Strike Clause-Cargo;↘Malicious Damage Clause.Section Five Practice on Marine Cargo InsuranceInsurance amount↘The highest amount of indemnity by the insurer in the case of total loss;↘The basis for the calculation of insurance premium;↘Insurance amount = CIF (CIP) × (1+ markup rate)- Markup covers the expected profit and incidental costs incurred;- Markup rate is normally 10%.Insurance premiumInsurance Premium (I) = insurance amount ×premium rate (R)= CIF(CIP) × (1+ markup rate) × premium rate (R)Insurance Document*Insurance Policy*Insurance Certificate*Open policy*Combined CertificateInsurance ClaimThe procedure of claim: Advice of goods damaged ⇨ Apply for inspection ⇨Evidence of lodging a claimSection Six Insurance Terms in S/CContract terms including:- Who;- How much;- What risk;- Clause.Notice:◆The coverage, currency and other terms must be consistent with the insurance clause of the L/C, for fear that the insurance policy be rejected by banks;◆The insured coverage and relative terms must be consistent with the contract, for fear that against the contract and result in claim for compensation;◆If the destination is inland, we should try to insure the inland destination, not only the destination port, so that the commodities can be insured in the whole process of transportation and avoid disputes;◆If the insured has special requirements, it should negotiate with the insurance company in advance.。