How to Select the Suitable Mode of International Transport in International Trade and Incoterm 2010

Abstract

This article is related to overview mode of international transport in international trade and delivery term, Incoterm 2010 rules. The international transport can be separated into four modes: air, water, road and rail transport. Furthermore, this article aims to study the factors affecting the selection of suitable mode of international transport and incoterm 2010. From the literature review, several factors affecting the selection of the mode of international transport are cost of service, nature of commodity, regularity of service, safety, speed of transport, goods quantities and other factors, such as, warehouse, packing, flexibility, and logistic feasibility and the last part of the article mentions about the factors to consider when choosing the Incoterm 2010 rules. There are six factors including value of product, degree of control, freight purchasing power, legal and finance restriction, company policy and revenue recognition.