Methodology for determining the cost of cargo delivery in international traffic according to the basic conditions of Incoterms

The relevance of the development of a methodological apparatus for determining the cost of transportation of goods in international traffic is stated. A brief description of the international rules of Incoterms regulating the relationship of the parties concluding a foreign trade contract for the sale and purchase of goods is given. The author's method of determining the cost of delivery of goods is proposed, which includes an exhaustive list of cost items incurred by the seller and the buyer in accordance with the Incoterms rules. Using the FOB and CIF bases, the application of the methodology is shown and expressions of the definition of expenses that are borne separately by the seller and the buyer (depending on the chosen basic delivery condition) are formulated. An expression is proposed for determining only the transport component in the total costs of supplying goods in international traffic, which can be used not only by cargo owners, but also by transport organizations. The methodology was tested on the example of the supply of products along the North-South international transport corridor. Possible schemes and routes of cargo transportation were considered (using the example of transportation of export cargo from the Russian Federation to Iran) and the cost of transportation along them was determined. Based on the calculations, conclusions were made about the preference of a number of schemes, as well as the possibility of greater participation in international transport of water transport (both sea and river). The infrastructure problems that interfere with the full development of transportation along the North-South international transport corridor are identified. There made some proposals for the further use of the implemented methodology for analyzing the size and impact of individual cost items in general on the cost of transportation, as well as the preference of various types of transport and the competitiveness of transport and logistics schemes with their participation.

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Publication Details

Journal
VESTNIK OF ASTRAKHAN STATE TECHNICAL UNIVERSITY SERIES MARINE ENGINEERING AND TECHNOLOGIES
Published
2024-09-05
DOI
https://doi.org/10.24143/2073-1574-2024-3-106-114
Primary Topic
Law, logistics, and international trade
Type
article
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article

Methodology for determining the cost of cargo delivery in international traffic according to the basic conditions of Incoterms

Olga Ivanovna Kartashova
VESTNIK OF ASTRAKHAN STATE TECHNICAL UNIVERSITY SERIES MARINE ENGINEERING AND TECHNOLOGIES
Law, logistics, and international trade
article

Methodology for determining the cost of cargo delivery in international traffic according to the basic conditions of Incoterms

Olga Ivanovna Kartashova
article en

Abstract

The relevance of the development of a methodological apparatus for determining the cost of transportation of goods in international traffic is stated. A brief description of the international rules of Incoterms regulating the relationship of the parties concluding a foreign trade contract for the sale and purchase of goods is given. The author's method of determining the cost of delivery of goods is proposed, which includes an exhaustive list of cost items incurred by the seller and the buyer in accordance with the Incoterms rules. Using the FOB and CIF bases, the application of the methodology is shown and expressions of the definition of expenses that are borne separately by the seller and the buyer (depending on the chosen basic delivery condition) are formulated. An expression is proposed for determining only the transport component in the total costs of supplying goods in international traffic, which can be used not only by cargo owners, but also by transport organizations. The methodology was tested on the example of the supply of products along the North-South international transport corridor. Possible schemes and routes of cargo transportation were considered (using the example of transportation of export cargo from the Russian Federation to Iran) and the cost of transportation along them was determined. Based on the calculations, conclusions were made about the preference of a number of schemes, as well as the possibility of greater participation in international transport of water transport (both sea and river). The infrastructure problems that interfere with the full development of transportation along the North-South international transport corridor are identified. There made some proposals for the further use of the implemented methodology for analyzing the size and impact of individual cost items in general on the cost of transportation, as well as the preference of various types of transport and the competitiveness of transport and logistics schemes with their participation.

VESTNIK OF ASTRAKHAN STATE TECHNICAL UNIVERSITY SERIES MARINE ENGINEERING AND TECHNOLOGIESVol. 2024(3)
Volga State University of Water Transport (RU)
Openalex Percentile: Top 75%
Law, logistics, and international trade
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