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how do deal with this order?--question from turkey fire-urgent
Post 1 of 25
Yin W
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some day ago..our company send some goods to turkey by air, and the goods get the airport 21th may. and for some problem, our customer didnot pick the goods on time..so be fire on 24th may, and the goods is canot get now.

the question is, we how to deal with it? our customer ask us how to get the insure..if I do the insurance(such as CIF), if possible they get the insure from there airport? and as the truth(we do FOB)..we donot do the insurance..if possible to get the insure?
Award 100 MVPs ( What's this? )for the best answer.
25 May 2006 01:31
Post 2 of 25
Replying to [Yin W]:
Although I don't fully understand your statement, it is clear to me that whether you sent the goods FOB or CIF, it is the customer's responsibility to clear the goods through customs at his end. If he did not pick up the cargo on time, then he will be charged a storage fee.
If you sent the goods FOB, then your responsibility ends when the goods are delivered to the Freight Forwarder in China.
If you sent them CIF, then You would have had them insured, and if anything happened to the goods, then you or your customer can claim on the Insurance policy.
What actually happened to the goods?
25 May 2006 07:17
Post 3 of 25
Yin W
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Replying to [grigo]:

Now I am not sure how about the goods..still in waiting...
26 May 2006 00:19
Post 4 of 25
Replying to [Yin W]:[em24]

It depends on the terms of your quotation (CIF, FOB or CNF). And CNF is without insurance cover, on the buyer's risk.
If it is not covered by insurance, there is no third party to pay for the damaged goods. The buyer has to bear the risk if they accept the terms of your offer. They can claim against the airport for the damage.
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26 May 2006 01:48
Post 5 of 25
Yin W
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Replying to [Street Smart]:

aha..thanks for your advice..and I am solve this problem..[em10]
26 May 2006 19:49
Post 6 of 25
mkidder_enterprises
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Replying to [Yin W]:

What intercom did you agree upon while completing the sale:

CIF or CNF

If you used CIF then it was your responsibility for insurance and you need to collect on the insurance.

If you used CNF, it would need to be the importer's responsibility for the insurance.

Now this is where it gets tricky, it was a fire and likely before you will be able to collect upon any insurance claims with the cargo insurer, you may need to wait for Turkish investigations to be complete as to what exactly caused the fire. You could be waiting for 6 before you can or your client can see any $$$ in regards to the goods if they were damaged.

This will also play a role becuase if you used CIF, it was likely insured with a Chinese insurance agency, and if you used CNF and the buyer insured, likely it would be a Turkish insurance agency. If you used CIF, I could see it taking even longer as the insurance agency will be working across the continent, versus CNF where the insurance agency is in the country where the goods were damaged.
27 May 2006 21:51
Post 7 of 25
Yin W
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Replying to [mkidder_enterprises]:

anyway, I use FOB, and the goods is damage, and that is our responsibility to reduce the loss for our customers try our best.

and now the important is not whose offence, that is how to minimize the loss..

however we will make the goods again for free...and fortunately, the cost is not too high[em10]
28 May 2006 17:19
Post 8 of 25
Replying to [Yin W]: As I understand from your words, your deal was FOB, so there is no way to turn it to CIF especially after they all burned; this is a fraud...

On th eother hand, I do not now any insurance company who may interest to do this tricky documents and then accept to pay that money to your customer. Do you?
18 Oct 2006 12:59
Post 9 of 25
Replying to [Yin W]: Since you have shipped the the order FOB you are not responsible for the goods damaged at the port of destination.( fire etc.) However if you wish to replace the goods at your expense then that is a company business decision as you are not obligated. The customer can claim damages of his goods from depot.
01 Dec 2006 12:57
Post 10 of 25
placidey
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Replying to [Yin W]:
well first and foremost you should check inward dispatch secondly whether the goods have been insured ,in case if you are not able to pick on the date of delivery you can get they put in the warehouse if it is lost in transit and it has insurance they have to comppensate provided everything is legal so all you have contact the cargo head with proper docuementations and id proof and you can get the the goods
09 Dec 2006 02:30
Post 11 of 25
Replying to [Yin W]:Dear Yin , if you read the INCOTERMS , you can find all of the low and meaning of words about the international trading , anyhow CIF= Cost Insurance Freight , FOB= Free On Board , CNF or C&F or CFR = Cost and FReight . so if in your agreement you have sold the goods FOB , client has to accept the risk of damage or any happence to the goods , If you sold CIF he can claim from insurance organization has insured the goods and if you sold C&F also he has to accept any problem happen during the transportation from source port ( Air Port , Sea Port or Land Port ) to destination .
And if you need to know more , I suggest to read the INCOTERMS carefully .
09 Dec 2006 13:04
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