Expeditors (EXPD) Status update summary

Introduction and agenda

• Webinar focused on Incoterms and supply chain strategy, emphasizing risk, cost control, and responsibilities in global trade.

• Presenters introduced with backgrounds in trade compliance and cargo insurance.

• Audience engagement through polls and Q&A was encouraged throughout the session.

Risk in the supply chain

• Real-world incidents highlighted risks at every stage, including accidents, natural disasters, and cargo loss.

• Carrier limits of liability often leave cargo owners exposed to losses beyond minimal compensation.

• Insurance is recommended to mitigate risks not covered by carrier liability.

• Legal frameworks like COGSA and international conventions define liability limits for different transport modes.

• Complex scenarios like general average and force majeure can shift financial responsibility unexpectedly.

Incoterms overview and application

• Incoterms define obligations, costs, and risk transfer between buyers and sellers in international trade.

• There are 11 Incoterms: 7 omnimodal and 4 ocean-specific, each with distinct points of risk and cost transfer.

• Proper use requires specificity in the named place and matching the term to the mode of transport.

• Incoterms do not address title passage, payment terms, or regulatory requirements; these must be handled separately.

• Terms can be modified by mutual agreement to fit unique transaction needs.