What is the difference between Freehand goods and Nominated goods?
Mastering the difference between Freehand and Nominated goods is key to understanding shipping processes and the respective responsibilities of shippers and consignees. Let's learn about the two terms with Macsco in the article below.
1. What is Freehand goods?
Freehand goods, also known as regular goods, is the type of goods that the shipper choose and reserve your seat on board, and at the same time responsible for paying related fees. In this case, the shipper makes all decisions and activities related to the shipping process.
For example:
Exporting businesses want to export goods to the US under Incoterms group C conditions, by choosing Freehand goods. In this case, the shipper has the right to choose and decide on the shipping company to transport the goods.
2. What are Nominated goods?
Nominated goods, also known as designated goods, usually applied to exported goods according to conditions Groups E and F. In this case, the buyer pays the freight himself and appoints a shipping company to transport the shipment. The seller only needs to pay the fees at the export port and does not have the right to choose another shipping company.
Normally, shipping line sales staff will handle both Freehand and Nominated goods, while Forwarder companies often focus on Freehand goods. Freehand goods allow them to choose the shipping company to get the best profits and commissions, while Nominated goods often require precision and time according to the schedule specified by the buyer.
3. Distinguish the difference between Freehand and Nominated goods:
The difference between Freehand and Nominated goods is very clear when considering international shipping rates and Incoterms conditions.
+ In Incoterms conditions:
Row Freehand Usually applicable to delivery terms Groups C and D in Incoterms. Exporting enterprises have the right to choose their own shipping company/forwarder company to support the import-export transportation process and must pay international shipping fees.
For example:
A business exports from Cat Lai port to Los Angeles port under group C conditions. In this case, the business will have to pay the freight from Vietnam to the US and choose the appropriate shipping line/forwarder company. with your needs.
Row Nominated usually applies to delivery terms E and F in Incoterms. This means that the exporting business does not need to pay international freight to the importing country. Responsibility for paying freight will lie with the party importing the goods.
+ International shipping fee:
If the shipment has an international shipping rate of prepay (freight prepaid), then that would be the goods Freehand, because the exporter is responsible for booking the ship and has paid the freight in the exporting country.
If the shipment has an international shipping rate of freight collect, then that would be the goods Nominated. In this case, the importer must book the ship and pay the freight at the port of destination.
Above are some shares about Freehand goods and Nominated goods. If you have questions that need answering or need to transport import and export goods, please contact Macsco Logistics immediately with a team of many years of experience for the fastest and most accurate support.
For further information and questions, please contact:
MACSCO LOGISTICS LIMITED
Address: 64 Nguyen Dinh Chieu, Da Kao Ward, District 1, Ho Chi Minh City, Vietnam
Phone: (84 28) 6270 6576
Email: anna@macsclogistics.com
Website: https://macscologistics.com
