Business vocabulary

А11 risk insurance Страхование от всех рисков

Cardboard box Картонная коробка

Civil commotion Беспорядки, волнения

Cover v. Покрывать

~ against а11 risks ~ все риски

~ damage ~ ущерб

~ losses ~ убытки.

Estimate Оценка (предварительный подсчет)

Ferry Паром

Freight Фрахт, плата за провоз

Air ~ Плата за перевоз груза воздушным

транспортом

Surface ~ Плата за перевоз груза наземным

транспортом

Insurance company Страховая компания

Моде of transportation Способ транспортировки

Pack v. Упаковывать

Packing Упаковка

Polythene bag Полиэтиленовый пакет

Protection from damp Защита от сырости

sail on а regular schedule Ходить по расписанию (о судах) Warehouse Склад

shipping Briefs. Review

Are these statements true or false? Put +(true) or -(false) in the box.

• 1. John Boden's current price list quoted FOB prices Helsinki.

• 2. Dynateam Innovations has been trading with Norway, Sweden and Finland for several years.

• 3. Dynateam decided to build а new warehouse near Helsinki because the trade flow with the Benelux countries was very intense.

• 4. Dynateam mainly delivers goods to Estonia by air.

• 5. Air freight is faster and more expensive than sea freight.

• 6. Sometimes the total cost of sending goods by air is less than the cost of surface freight.

• 7. The Russian partners are going to arrange transportation from Helsinki to St. Petersburg by rail.

• 8. T-shirts will be packed in polythene bags to ensure protection from heat.

• 9. An а11 risk insurance covers losses caused by strikes and riots.

• 10. Dynateam Innovations prefers scheduled lines bёcause they are cheaper than nonscheduled ones.

Your own business

Which mode of transportation до you normally use when you deliver goods to your customers?

Which shipping terms до you prefer?

Do you handle transportation yourself or employ а transportation company?

What insurance до you buy when dealing with foreign and domestic customers?

Modern business usage Jargon

Wall Street - the name of this street has become а symbol of the American financial world

The City - the oldest part of London, now has become а symbol of the British finance and commerce

Business reading

Importing - Exporting: Shipping Terms

Whether you are buying or selling you have to consider the terms in accordance with which the transaction will be made. All shipping terms are defined in а special book known as the INCOTERMS (International Commercial Terms). А11 in а11, there are 14 different ways of arranging the shipment of goods. Since in international trade the interests of the buyer and the seller are conflicting, both parties will prefer different ways of delivery of their merchandise.

We'll not be discussing а11 14 terms, but highlight the most popular ones.

For the seller the transaction under Ex Works term is the most attractive one. In such case, the only thing he has to до is to put the goods on а prearranged place outside the factory and the buyer will have to arrange transportation and to bear а11 the expenses connected with the transportation process, insurance and. customs clearance.

For the buyer the transaction under Delivered Duty Paid term

is preferable. Не does, not have to worry about anything, because

the seller will pay а11 the costs connected with the delivery of goods to the importer.

It's only natural that these shipping terms are not particularly popular in international trade, because they put one of the paities in а vulnerable position. International trade is а two-way process, and а deal is а result of а sensible compromise. That's why FOB, FAS, C&F, CIF terms seem to be the most popular ones.

The initials FOB stand for Free on Board. This term is a little bit confusing, because 'on Board' does not necessarily mean 'on board the ship'. 'On Board' may imply any means of transportation, namely plane, lorry, train.

So, if you really want to have your goods delivered 'On Board the Ship', you must specify FOB Vessel, Port of London. [п general, the term FOB implies that the buyer becomes the owner of the goods the moment they have been placed over the ship's rail. The exporter has to deliver the goods as indicated above, to notify the other patty, to get an export licence, if necessary. Customs formalities in his country are also the exporter's respon­sibilities.

The initials FAS stand for Free Alongside Ship. Under this term, the seller is responsible for the goods until the moment they are delivered to а port, where they will be loaded on а vessel. Since that moment, the control over the goods passes on to the buyer and the latter will have to pay export taxes and loading charges, if any.

The initials C&F stand for Cost and Freight. Under this term the seller pays the ocean freigh costs, but does not pay for the insurance. 1f а deal is concluded оn C&F terms, the buyer usually tries to minimize the iisks involved in the transportation by buying insurance.

The initials CIF stand for Cost, Isurance, Freight. Under this term, the importer buys the goods, thё freight and insurance from the exporter who arranges everything.

А11 these shipping terms have some advantages and disadvantages CIF seems to be very popular even among exporters with а long record of international trade.

BUSINESS VOCABULARY

Bear expenses v. Нести расходы

C&F (Cost and Freight) Каф, стоимость и фрахт

CIF (Cost, insurance, Freight) Сиф, стоимость, страхование, фрахт

Conclude а deal v. Заключать сделку

Customs formalities Таможенные формальности

Delivery Доставка

Duty Paid C oплачeннoй пошлиной

Export tax Экспортная пошлина

Ex-works Франко-завод

FAS (Free Alongside Ship) Фаc, фpaнкo вдоль бopтa cyдна ~

FOB (Free on Board) Фoб, франко-борт, cвoбoдно

_нa бopтy

INCOTERMS (International Принятые в мyждyнapoднoй'"

Commercial Tuns) практике определения кoммep­

чecкиx терминов, нaибoлeе часто встречающиеся вo ввeш­нeтoproвыx кoнтpaктax

Load on a vessel v. _{Грузить нa} судно

Loading charges Oплaтa погрузки

Lorry Грузовик

Pay all costs v. O_плa_чивa_ть все расходы

Prearranged place Зapaнee обговоренное место

(Ship's) rail Перил)

Transportation Трaнспортировка

Vehicle Транспортное средство

Vessel Судно