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The Answer is not easy, As you need to check the possibilities to re-export to the loading port a goods from the discharging port. For Example FR Vessel can Curry LPG (Propane and Butane) also can curry other petrochemicals refrigerated from0 Degree to -48 Degree. This will reduce the cost of the freight as if the vessel cost you for charter20,0 USD/Day and to load take2 days and to arrive need10 days then another2 days for discharging then back again for10 days, you will see that you will be additional14-16 days free. so is better to do a logistics to load other goods for other client from the discharging port to nearest port to the original loading port
I believe by "long term leasing", you mean a contract with the liner company. Its better to book a FCL if the goods will hold enough in a full container as the safety and handling of the goods will be commendable than LCL. Eventually, it depends on the volume of goods and the frequency of the shipments that matters before deciding the type of contract we enter we want to enter with freight company.
I prefer to use EX-Works which means that the shipment will be picked up from point of origin and the seller does not have to pay for any shipping, carriage, insurance or transportation related charges. This may decrease customer service level or consumer satisfaction in the transportation mode, but increases return on investment and profitability as the seller doesn't have to pay for transportation, insurance, or carriage related charges. Vice-versa, DDU (Delivered Duty Unpaid) will increase customer service level with insurance, transportation paid but tax duty upaid and is usually used for international transportation. There are many other incoterms for international shipments used commonly and can be found in any transportation journals. They are arranged from C, F and D (depending on the details of the move).
To book vessel that's mean you are going to charter a vessel on lease contract which will be costy if you do not arrange for the logistics in the right way. the options to reduce cost and manage the logistics with the long term booked vessel ( Chartering - Leasing) is to secure that the vessel will load the goods from loading port to desination port and instead of returning the vessel empty to reload the other cargo is to secure a client from your destination or closer destination to load their goods using your booked vessel where you will reduce cost of chartering and leasing of the vessel and make your calculation more feasible and competitive.
Usually if you book for full load vessel for example for Sugar you get the cost of the freight but when you need to re-load again and again the vessel will return empty and your cost will be increased... so, the proper logistic is to reduce cost by serving other client in the way back.
Wish you all the best.
Tariq Al Farah
I apologies being the buyer? or the Seller side?., What´s is it going to be loading?.
Quick answer, in the "Best practices". / C.I.F
To disglose on "Long term leasing". Its depend of the destination Port.
1. CFR: Cost and Freight, aka C&F, aka CNF
This acronym means that the seller covers all the costs of bringing goods from their origin to the port of destination, including carriage costs and clearing the goods for export except for the insurance.
Note: Even though the seller takes care of the actual loading and transportation of goods up to the port of destination, the buyer pays the insurance (and therefore assumes the risk) from the moment the goods are loaded onto the vessel at the port of origin throughout their transit to the port of destination and beyond.
This term is used exclusively for maritime and inland waterway trade.
2. CIF: Cost Insurance and Freight
This term is identical to the one preceding it – with exception for the insurance portion. With a CIF arrangement, the seller (not the buyer) assumes the risk (and therefore is responsible for purchasing insurance) for the goods during transit from origin to the port of destination.
Note: This term too applies solely to maritime and inland waterway trade. However, CIF may not be appropriate where the goods are handed over to the carrier before they are loaded on the vessel – the usual container scenario.
3. CPT: Carriage Paid To, aka DPC
LCL (Less-than-Container-Load) An ocean-shipping and intermodal industry term; LTL equivalent in container shipping. Container freight stations at ports serve as consolidation and deconsolidation terminals. Historically, LCL also stands for less-than-carload. Before the prominence of interstate trucking, railroads offered less-than-carload (LCL) service but this business has largely disappeared.
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