{"id":4664,"date":"2025-05-15T07:38:33","date_gmt":"2025-05-15T11:38:33","guid":{"rendered":"https:\/\/www.megaglobal.com.py\/?p=4664"},"modified":"2025-11-18T12:12:12","modified_gmt":"2025-11-18T15:12:12","slug":"how-the-wrong-incoterm-raises-your-costs","status":"publish","type":"post","link":"https:\/\/www.megaglobal.com.py\/en\/how-the-wrong-incoterm-raises-your-costs\/","title":{"rendered":"How the Wrong Incoterm Raises Your Costs"},"content":{"rendered":"

Common mistakes that increase your international operation expenses.<\/span><\/h3>\n

Choosing the right Incoterm is not just paperwork \u2014 it sets who pays what, where responsibility shifts, and who arranges insurance. A wrong choice can turn a profitable shipment into a costly one: unexpected freight, insufficient insurance, customs delays, and disputes. Below we explain the most common mistakes and the questions to ask before <\/i>signing.<\/i>
\n<\/i><\/p>\n

1. Why <\/b>Incoterms matter<\/b>
\n– Air <\/b>freight<\/b>: Best for urgent shipments. Delivery usually takes between 24 to 72 hours depending on the origin and destination. Commonly used in Just-In-Time logistics or when speed is crucial to operations.
\n– Sea <\/b>freight<\/b>: Typically takes 15 to 45 days, depending on the route and number of stops. While slower, it works well for planned shipments.
\n
\n2<\/b>. Shipping <\/b>costs
\n<\/b>Incoterms define the transfer of <\/b>risk<\/strong><\/span><\/a> between buyer and seller. Lack of clarity leads to confusion over freight costs, insurance responsibilities, and import\/export formalities.
\nReal case:
\n<\/b>If you agree FOB <\/b>but the supplier assumes CIF<\/b>, you may end up without the expected control or facing double-payments for insurance. In FOB the seller delivers to shipboard; in CIF the seller pays freight and minimum insurance to destination port.<\/p>\n

3. Costly mistakes and fixes<\/b>
\n<\/b>\u2022 Choosing <\/b>by habit: <\/b>defaulting to \u201cwe use FOB\u201d without checking if it fits the transport mode.
>Fix: confirm the transport mode <\/b>first.
\n\u2022 Not <\/b>specifying place: <\/b>using \u201cFOB\u201d without precise port or Incoterms version (e.g., FOB Santos Port, Incoterms 2020).
>Fix: always specify exact location<\/b> and version.
\n\u2022 Assuming <\/b>insurance covers everything: <\/b>CIF\/CIP imply seller-arranged insurance but often with limited coverage.
>Fix: review policy exclusions and consider<\/strong> additional coverage <\/b><\/span><\/a>when needed.<\/p>\n

4. Quick pre-sign checklist
\n<\/b>\u2022 Confirm transport mode (sea, air, road).
\n\u2022 <\/b>Check who assumes insurance and liability in each leg.
\n\u2022 <\/b>Specify the exact delivery point.
\n\u2022 <\/b>Consult your freight forwarder or customs broker before acceptance.<\/p>\n

An Incoterm is more than a clause \u2014 it affects costs, schedules and liability. Reviewing it properly avoids surprises. We at Megaglobal help clients negotiate terms that protect their operations.<\/p>\n

\ud83d\udcac Want an expert review of your next shipment\u2019s Incoterm? Contact us<\/strong><\/span> and let\u2019s review it together.<\/p>\n

#Incoterms #InternationalTrade #FreightForwarding #Megaglobal #ImportExport #MegaglobalBlog #Megaglobal #Blog #InternationalLogistics #CargoTransport #MaritimeTransport #AirTransport #LandTransport #CustomsManagement<\/p>\n","protected":false},"excerpt":{"rendered":"

Common mistakes that increase your international operation expenses. Choosing the right Incoterm is not just paperwork \u2014 it sets who pays what, where responsibility shifts, and who arranges insurance. A wrong choice can turn a profitable shipment into a costly one: unexpected freight, insufficient insurance, customs delays, and disputes. Below we explain the most common […]<\/p>\n","protected":false},"author":3,"featured_media":4648,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_joinchat":[],"footnotes":""},"categories":[21],"tags":[],"class_list":["post-4664","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog-en"],"yoast_head":"\nHow the Wrong Incoterm Raises Your Costs - Megaglobal<\/title>\n<meta name=\"description\" content=\"A wrong Incoterm can increase your costs. 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