A Guide to Our Logistic Policies

When purchasing chemicals from our company, understanding the terms under which your order will be shipped is crucial. At Mehr BIP, we use internationally recognized Incoterms (International Commercial Terms) to clarify the responsibilities of both buyers and sellers throughout the shipping process. These terms help minimize risks and ensure smooth logistics, especially when dealing with international trade.

We primarily use CPT (Carriage Paid To), FCA (Free Carrier), and FOB (Free On Board) or FAS (Free Alongside Ship) for shipments from our warehouses in Dubai (Jebel Ali Port) and from the Iranian port of Bandar Abbas (Shahid Rajaee Customs). This article explains what these terms mean and why they are beneficial for your shipments.

1-CPT (Carriage Paid To) – Our Preferred Shipping Term

CPT (Carriage Paid To) is one of the most commonly used Incoterms for shipping goods internationally, especially when the Mehr BIP is managing the transportation to a specified destination.

Seller's Responsibility: Under CPT, we cover all costs related to transporting the goods to the agreed destination. This includes transporting from Iran (Bandar Abbas - Shahid Rajaee Customs) or Dubai (Jebel Ali Port), where the goods are stored in our warehouse, to the agreed location. All logistics up to this point are handled by us.

Buyer's Responsibility: Once the goods are handed over to the carrier (in Dubai or Bandar Abbas), the risk of loss or damage transfers to the buyer. From this point, the buyer is responsible for any further shipping costs, customs clearance, or other charges.

Why Do We Use CPT?

Risk Management: By choosing CPT, we minimize risk for both you and us. We manage the transportation to the selected location, and from that point, the buyer takes over the responsibility. Cost Transparency: With CPT, you’ll know the total cost of transportation upfront since we handle the entire logistics process until the goods reach the designated location (Dubai or Bandar Abbas).

2-FCA (Free Carrier) – Flexibility and Control for Buyers

FCA (Free Carrier) is another common Incoterm we use for shipments from Dubai (Jebel Ali Port) or Bandar Abbas (Shahid Rajaee Customs) to various destinations. This term provides the buyer with more control over the logistics once the goods are handed over to the carrier.

Seller's Responsibility: We deliver the goods to a designated carrier or freight forwarder either in Dubai or Bandar Abbas, and we cover all transportation costs up until that point. After the goods are handed over to the carrier, we have fulfilled our responsibilities.

Buyer's Responsibility: After the goods are handed over to the carrier, the buyer assumes full responsibility for shipping, insurance, customs duties, and further transportation. This allows the buyer flexibility in managing the logistics process.

Why Do We Use FCA?

Flexibility: FCA is great for buyers who want to manage their own shipping process after the goods are handed over to the carrier. If you already have preferred carriers or shipping partners, FCA gives you the flexibility to take control of the next steps. Efficient Handling: FCA allows us to efficiently ship the goods to the carrier in Dubai or Bandar Abbas and ensure that everything is ready for onward transportation without delays or risks.

3-FOB (Free On Board) and FAS (Free Alongside Ship) – Good Options for Bandar Abbas

If goods are being shipped from Bandar Abbas (Shahid Rajaee Customs), FOB and FAS are excellent Incoterms to consider, especially for ocean freight.

FOB (Free On Board): In this case, the seller (us) is responsible for all costs and risks related to transporting the goods to the port of Bandar Abbas and loading them onto the vessel. After the goods are on board, the buyer assumes all further costs and risks, including shipping, insurance, and customs duties.

FAS (Free Alongside Ship): This is similar to FOB, but in FAS, the seller only delivers the goods to the side of the ship at the port (Bandar Abbas). The buyer takes responsibility for loading the goods onto the ship and for all subsequent costs and risks.

Why Do We Use FOB or FAS?

Direct Ocean Freight: These terms are ideal if the buyer intends to handle ocean freight directly from Bandar Abbas. Clear Responsibility: With FOB or FAS, the buyer has clear control over ocean freight, which can sometimes be more efficient if they have their own shipping lines or partners.

CPT (Carriage Paid To) – Our Preferred Shipping Term

Benefits of Choosing Our Shipping Terms

Reduced Risk for Buyers: With CPT, FCA, FOB, and FAS, buyers can minimize risk by clearly understanding when their responsibility begins. This clarity helps in planning logistics and managing responsibilities effectively.

Efficient Logistics: Our strategy of utilizing both Dubai and Bandar Abbas as central hubs for handling goods makes international shipments faster and more efficient. These locations offer smooth customs clearance and fast delivery to many destinations.

Transparency in Costs: With CPT, the total cost of transportation is clear from the start, as we manage all logistics up to the designated location. With FCA, FOB, or FAS, you can choose your preferred carrier and manage shipping costs, making the process more adaptable to your needs.

Conclusion

At Mehr BIP, we prioritize clear communication and smooth logistics to ensure a seamless purchasing experience for you. By utilizing CPT, FCA, FOB, and FAS, we offer flexibility, transparency, and efficiency in delivering chemicals to your location.

Whether you choose to have your goods shipped from our warehouse in Dubai (Jebel Ali Port) or directly from the port of Bandar Abbas (Shahid Rajaee Customs) in Iran, we are committed to ensuring that your order is processed with minimal risk and maximum efficiency.

If you have any questions about our Incoterms or shipping policies, feel free to reach out. We are here to support you every step of the way.

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