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| Frequently Asked Question 2026s | |
This FAQ site page is for USCT members and will contain mostly understood by suppliers, endures and USCT members. Site should be listed at least twice a month and matter to do with the FTNX doctrine of trade and any updates will also be included here. | |
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DOCTRINE OF TRADE UPDATE
DOCTRINE OF TRADE UPDATE Posted: 8 May 2026 • The term ‘ships rails’ as specified under ICC incoterms is not longer used in industry. However all PCT’s must still serve reference to the ‘ships rails’ in an NBC FOB deal. The full term is ‘Delivery of goods over the ships rails as ordered” ensures we are specific to what is being sought. It also clearly differentiates the difference between FAS and FOB deliveries. • Simply stating ‘on board’ as ordered is not good enough. On board a barge is not a ship. • The term “As ordered” is a FTNX created doctrine term that industry now uses. “As ordered in good condition” is not worth applying as the term “as ordered” refers to what the PCT has ordered. In this light it is important that the PSI is conducted not ‘on board’ but before loading in that–if the goods are ‘not as ordered’ legally rejecting the goods at the expense of thee supplier, protects the PCT intently from any liabilities. All those small aspects is what many ill informed traders bypass, without understanding that by taking such ‘small shortcuts’ it could lead to huge financial loses. • The term “Act of God” is another aspect that the doctrine has omitted that others have now followed. Every situation has a cause. • The current edition Incoterms is 2020 and current UCP Rules is defined as UCP 600 hence the terms are applied to ITSI without changing the underlying basis and doctrine. ITSI is in its 16th year of release, as a first run publication. • CIF incoterms and freight aspect. Some are still confused about the freight prepaid status of the end buyer. Please download 10 page full explanation via library which includes matter about a PCT chartering their own ship. “Carriage” is not “freight.” The supplier pays the shipowner for “carriage” which in part may be converted to mean a percentage of “freight.” Under CIF Incoterms supplier orders the ship and pays for “carriage” is what’s confusing the whole aspect. A download when it appears in library will show application via a running example.The end buyer “pays for freight” due to a “credit” served by the PCT is very specific. Some USCT member have contacted shipping agents who didn’t know what the PCT was talking about. A PCT protects goods and also has no interest in what the job of a shipping agent is. • A shipowner or ships agent/ broker is not interested who Incoterms says. They want payment for “carriage” upfront. ICC Incoterms is to do with goods, shipowners have their own rules. Those who want to study such rules should source “Shell-time 4” or “ASBATANKOY” charter party agreement. Both can be found online. This is not the nature of business for a PCT. A ships broker or agent generally earn 1.25% commission as paid by the supplier (CIF) or end buyer ( FOB) ordering the ship. A PCT is a commodity trader as such have much more complex matters to deal with and serve reason why proper gross profit margins are important. • A PCT is “protecting the goods” and ensuring safe payment application apply. • A PCT first deal in FOB to obtain experience, then moves to CFR and later single shipment at CIF, these steps lead to the understanding of CIF revolving deals; which again is slightly different to CIF single shipments. • While ITSI explains the underlying process and procedure that intermediaries must learn to trade as a PCT, even our 1000 page beta doctrine could add another 400 pages to cover all aspects intently.The lesson was to always start with FOB deals and move forward from this aspect to learn the trading basis intently via experience. Taking up a 4 year full academic level study was not an option for many traders taking up the study; a lot has been advised in the FTNX doctrine in a manner to enable an applicant to commence trading quickly measured in months not years. Back to Top |
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