FOB (Free On Board) is a delivery term in which the seller is responsible for the goods until they are loaded onto the vessel. Once the goods are loaded onto the ship, all risks and costs are transferred to the buyer.

Features:
• The seller is responsible up to the loading port.
• Once the goods are loaded onto the vessel, the risk transfers to the buyer.
• Used in sea freight transportation.

Advantage:
The buyer can control the freight and transportation process.

CIF (Cost, Insurance and Freight) is a delivery term in which the seller is responsible for the goods, including transportation and insurance, up to the destination port.

Features:
• Freight is paid by the seller.
• Insurance is arranged by the seller.
• The risk transfers to the buyer at the loading port.

Advantage:
• There is less operational burden for the buyer.

CFR (Cost and Freight) is a delivery term in which the seller covers the transportation cost, while the insurance responsibility belongs to the buyer.

Features:
• Freight is the responsibility of the seller.
• Insurance is the responsibility of the buyer.
• The risk transfers at the loading port.

EXW (Ex Works) is a delivery term in which the seller has minimum responsibility. The goods are made available to the buyer at the seller’s premises.

Features:
• All transportation and risk are the responsibility of the buyer.
• The seller only prepares the goods.

Advantage:
• It is the lowest responsibility model for the seller.

DAP (Delivered At Place) is a delivery term in which the seller transports the goods to the agreed destination but does not pay the customs duties.

Features:
• The place of delivery is the buyer’s country.
• Customs clearance procedures are the responsibility of the buyer.

DDP (Delivered Duty Paid) is the delivery term under which the seller bears the maximum responsibility.

Features:
• All costs are borne by the seller.
• Including customs duties and taxes.
• Delivery is made to the buyer’s premises (door-to-door).

Advantage:
It is the most convenient delivery method for the buyer.

FCA (Free Carrier) is the delivery term under which the seller is responsible until the goods are delivered to the designated carrier.

Features:
• It is suitable for multimodal transport.
• A flexible delivery point can be chosen.

CPT (Carriage Paid To) is a delivery term in which the seller pays the freight costs, but the risk transfers to the buyer at an early stage.

CIP is similar to CPT, but in this term the insurance is arranged by the seller.

What is FOB? What are the differences from CIF?

Find out which delivery term is more advantageous.

What is FOB?
FOB (Free On Board) is a delivery term in which the seller is responsible for the goods until they are loaded onto the vessel.

What is CIF?
In CIF, the seller also covers the freight and insurance costs.

Key Differences
FOB: Freight is the responsibility of the buyer.
CIF: Freight is the responsibility of the seller.

Which is More Advantageous?
Buyers who want more control prefer FOB.

What is freight, and how is it calculated? Learn about the factors that affect transportation costs.

What is Freight?
Freight is the transportation fee paid to move a shipment from one point to another. It is one of the most important cost components in international shipping.

Freight varies depending on the mode of transport (sea, air, road, rail), as well as the volume and weight of the cargo, distance, and market conditions.

Freight calculation depends on several factors:

Key Factors:
• Weight and volume of the cargo
• Transport distance
• Mode of transport (sea, air, etc.)
• Fuel costs
• Port and handling charges

In air freight, volumetric weight is generally used, while in sea freight pricing is usually based on containers.

Important Note:
In air freight, volumetric weight is used, while in sea freight, container-based pricing is applied.

In container shipping, prices are not fixed and vary depending on the following factors:

• Port of departure and destination port
• Container type (20ft, 40ft, reefer, etc.)
• Seasonal demand fluctuations
• Supply and demand balance
• Additional services (customs clearance, warehousing, etc.)

Therefore, each shipment is priced individually.

Why do freight rates constantly change? Factors affecting logistics costs.

Why Do They Change?
• Supply and demand
• Fuel prices
• Global crises

Conclusion
Freight is dynamic and not fixed.

To optimize logistics costs:
• The appropriate mode of transport should be selected.
• Appropriate Incoterms should be used.
• Consolidation (LCL) should be preferred.
• Long-term planning should be carried out.
• A reliable logistics partner should be worked with.
With proper planning, significant cost advantages can be achieved.

What are FCL and LCL?
Detailed information about container transportation is listed below.

What is FCL?
FCL (Full Container Load) refers to a shipment in which a container is fully loaded by a single customer.

What is LCL?
LCL (Less than Container Load) refers to the transportation of cargo from multiple customers consolidated into a single container.

Which one?
• Large shipment → FCL
• Small shipment → LCL

FCL Advantages:
• Faster delivery time
• Lower risk of handling damage

LCL Advantages:
• Lower cost
• Ideal for small-volume shipments

Chartering is the process of renting a ship or aircraft for cargo transportation. It allows for the dedicated allocation of a transport vessel tailored to the specific requirements of the cargo when standard liner services are insufficient.

Chartering is especially preferred for large-volume, heavy-tonnage, or cargo requiring special equipment, offering a flexible and operationally robust logistics solution.
It is the leasing of a ship or aircraft for cargo transportation.

Types
• Voyage Charter
• Time Charter
• Bareboat Charter

Advantages
• An ideal solution for large and special cargo.
• Flexible route and scheduling.
• Vessel selection tailored to the type of cargo.
• Maximum efficiency for project-based shipments.

Voyage Charter (Voyage-Based Chartering)
It is the chartering of a vessel for the transportation of a specific cargo along a defined route.

Time Charter (Time-Based Chartering)
It is the chartering of a vessel for a specific period of time. Operational control belongs to the charterer.

Bareboat Charter (Crewless Chartering)
The vessel is chartered without a crew. All operations are managed by the charterer.

Project cargo transportation is the planned and engineering-focused movement of heavy, oversized, or special equipment cargo that falls outside standard dimensions.
This process includes not only transportation but also detailed planning, site analysis, equipment selection, and operational management.

Scope of Project Cargo Transportation
• Out-of-gauge cargo transportation
• Heavy-lift equipment shipments
• Industrial plant equipment
• Energy projects (wind turbines, generators, etc.)
• Factory relocations

Project Cargo Transportation Process
1. Feasibility and Planning
Cargo analysis, route planning, and risk assessment are carried out.
2. Engineering and Equipment Selection
Appropriate transportation equipment and methods are determined.
3. Operation Management
Loading, transportation, and unloading processes are coordinated.
4. Delivery and Reporting
The operation is successfully completed and documented in a report.

Advantages of Project Cargo Transportation
• Safe transportation for special cargo
• Minimization of operational risks
• Time savings through professional planning
• End-to-end logistics management
Scope
• Heavy machinery
• Energy equipments

Why Special?
It requires engineering and planning.

Which Transportation Mode When?

When are sea, air, and road transportation preferred?

Comparison
• If speed is important → Air Freight
• If cost is important → Sea Freight
• If flexibility is required → Road Freight
• Long distance + cost-efficient → Rail Freight

The export process covers all stages from the sale of a product abroad to its final delivery. With proper planning and professional logistics management, the process is completed quickly and smoothly.

Export Process Steps:
1. Customer and Order Process
An agreement is reached with the foreign buyer and the order is placed.
2. Contract and Incoterms Determination
The delivery terms (FOB, CIF, etc.) are defined.
3. Product Preparation and Packaging
The products are prepared in a suitable condition for transportation.
4. Customs Procedures
The export declaration is prepared and official procedures are completed.
5. Transportation and Shipment
The cargo is dispatched using the selected mode of transport.
6. Delivery
The cargo is delivered to the consignee, and the process is completed.

Import refers to the process of purchasing goods from abroad and bringing them into the country. If not managed properly, it can lead to cost increases and time losses.

Import Process:
• Supplier selection
• Product order and contract
• Transportation arrangement
• Customs procedures
• Payment of taxes and duties
• Receipt of goods

With professional logistics support, the process proceeds faster and more smoothly.

Customs clearance is the completion of the official import and export procedures for goods entering or leaving a country.

Scope of Customs Clearance:
• Preparation of the customs declaration
• Document verification
• Tax calculation
• Official approval procedures

Accurate and complete document management is critical to prevent delays.

To optimize logistics costs:
• The appropriate mode of transport should be selected.
• Appropriate Incoterms should be used.
• Consolidation (LCL) should be preferred.
• Long-term planning should be carried out.
• A reliable logistics partner should be worked with.

Significant cost advantages can be achieved through proper planning. Reducing logistics costs is possible with accurate planning and strategic decisions.

Here are the key methods for cost optimization:
Selecting the Right Mode of Transport
Depending on the urgency and volume of the cargo, sea, air, or multimodal transportation should be preferred.

Consolidation (Partial/Less-than-Container Load Transport)
For small-volume shipments, cost advantages can be achieved by using LCL (Less than Container Load).

Proper Use of Incoterms
Choosing the wrong delivery term can lead to unnecessary costs.

Long-Term Planning
Last-minute operations are generally more expensive. Planning in advance reduces costs.

Working with a Strong Logistics Partner
An experienced logistics company provides cost advantages by offering alternative solutions.

Route and Operational Optimization
Planning the shortest and most efficient route directly affects costs.

Transit time is the total time it takes for a shipment to travel from the point of origin to the destination.

This duration varies depending on the mode of transport, route, customs procedures, and operational workload.

Multimodal transportation is the shipment of cargo using more than one mode of transport (such as sea, road, rail, etc.).

This method provides optimized solutions in terms of cost and transit time.

• Incorrect selection of Incoterms
• Incomplete or incorrect documentation
• Incorrect selection of transportation mode
• Inadequate planning
• Choosing an unreliable logistics partner

These mistakes can lead to increased costs and delays.