A practical route through mineral logistics: choose the delivery terms, understand cargo requirements and calculate what arrival really costs.
| Stage | Practical task | Release check |
|---|---|---|
| 01 · Define the cargo | Identify product, assay, dry/wet basis, quantity, hazards and packaging. | Specification and handling requirements agreed. |
| 02 · Agree the sale | Name the Incoterm, precise place and version; agree payment, quality and title separately. | Sales terms, shipment window and document requirements align. |
| 03 · Book the route | Confirm collection, cross-border legs, main carriage, capacity and destination delivery. | Cargo accepted; costs, cut-offs and exclusions recorded. |
| 04 · Prepare and clear export | Complete packing, loading, required tests and export declarations. | Correct documents and any required licences available. |
| 05 · Handover and transport | Record the actual delivery event and shipment evidence. | Risk-transfer evidence retained; milestones monitored. |
| 06 · Clear and deliver | Arrange import clearance, release, unloading and equipment return. | Receipt, weight and condition recorded; exceptions reported promptly. |
| Mode | Typical fit | Key checks |
|---|---|---|
| Road | Mine collection, regional moves and final delivery. | Axle/payload limits, route access, border arrangements and loading equipment. |
| Rail | Repeat inland bulk or container flows where terminals and services exist. | Gauge interfaces, transloading, wagons, schedules and last-mile access. |
| Sea bulk | Large homogeneous parcels loaded directly into a vessel. | Cargo schedule, port draft, holds, loading rate and discharge capability. |
| Sea container | Smaller parcels, bags or packaged goods. | Payload, weight distribution, cargo acceptance, securing and VGM. |
| Air | Samples or urgent high-value shipments. | Chargeable weight, packaging and dangerous-goods acceptance. |
For a landlocked origin such as Mongolia, check every transit leg and border interface. An onward seaport does not make an inland handover “FOB”. Obtain a route-specific quote; fixed sample transit times are not a service promise.
Keep three questions separate: where does risk pass, who pays carriage, and who handles formalities? They need not change at the same place.
Only CIP and CIF require the seller to arrange cargo insurance under the rule. The standard minimum insured amount is 110% of the contract price in the contract currency; scope, exclusions and any agreed variations still need review.
Read the source: ICC · Multimodal rules ↗ · ICC · Maritime rules ↗
| Rule | Mode | Main carriage paid by | Export clearance | Import clearance / duties | Seller must insure? |
|---|---|---|---|---|---|
| EXW | Any mode | Buyer | Buyer | Buyer | No |
| FCA | Any mode | Buyer | Seller | Buyer | No |
| CPT | Any mode | Seller to named destination | Seller | Buyer | No |
| CIP | Any mode | Seller to named destination | Seller | Buyer | Yes |
| DAP | Any mode | Seller to named destination | Seller | Buyer | No |
| DPU | Any mode | Seller to named destination | Seller | Buyer | No |
| DDP | Any mode | Seller to named destination | Seller | Seller | No |
| FAS | Sea / inland waterway | Buyer | Seller | Buyer | No |
| FOB | Sea / inland waterway | Buyer | Seller | Buyer | No |
| CFR | Sea / inland waterway | Seller to named destination port | Seller | Buyer | No |
| CIF | Sea / inland waterway | Seller to named destination port | Seller | Buyer | Yes |
Normal obligations under unmodified rules, assuming performance by both parties. A “No” does not mean insurance is unnecessary. Exact delivery points, notices, exceptions and carriage terms still matter.
Read the source: ICC · Incoterms® 2020 ↗ · ICC · What the rules cover ↗ · ICC Academy · FCA and FOB ↗ · ICC Academy · CIP and CIF ↗ · ICC Academy · EXW and DDP ↗
| Document | What it does | Who usually supplies it |
|---|---|---|
| Commercial invoice | Records goods, parties, price and sale terms; supports declaration and payment. | Seller |
| Packing / weight list | Identifies packages, marks, gross and net weights. Bulk shipments may use a weight statement. | Seller or packer |
| Transport document | Records receipt/carriage. A negotiable bill of lading can also function as a document of title; a sea waybill is non-negotiable. | Carrier or authorised agent |
| Origin evidence | Supports the relevant origin claim. Preferential origin needs evidence meeting the applicable agreement. | Exporter or authorised body, depending on scheme |
| Assay / inspection certificate | Reports the tested sample, method and results; its scope matters. | Agreed laboratory or inspection company |
| Insurance evidence | Identifies insured parties, voyage, value, cover and claims contact. | Insurer, broker or policyholder |
| Customs and cargo-safety documents | Declarations, licences and hazard/weight information as applicable. | Responsible declarant, shipper or authorised party |
For Great Britain, establish who imports, obtain the appropriate GB EORI, classify the actual product, check origin and valuation, and arrange the customs declaration and applicable taxes. Northern Ireland has distinct arrangements. A freight booking does not replace clearance.
Screen counterparties, ownership/control, cargo, end-use, route and payment channels against the applicable restrictions. Export controls and financial sanctions are separate checks.
Read the source: HMRC · Importing into the UK ↗ · HMRC · Commodity classification ↗ · ICC · Trade terminology ↗ · OFSI · Importer and exporter guidance ↗
A mineral name alone does not establish a safe shipping classification. Confirm the actual material, physical form, moisture, particle size and chemical hazards.
The IMSBC Code addresses solid bulk cargoes other than grain. Group A cargoes may liquefy or undergo dynamic separation; Group B cargoes have chemical hazards; Group C has neither Group A nor Group B properties. A cargo may be both A and B.
Where required, obtain representative moisture and transportable moisture limit (TML) evidence and follow the applicable cargo schedule and loading restrictions. An ordinary commercial assay is not a substitute.
Confirm the package, liner, securing method, load distribution and permitted payload with the carrier. For applicable SOLAS voyages, verified gross mass (VGM) must be available before a packed container is loaded.
The shipper is responsible for VGM. It includes cargo, packaging, securing material and container tare. Packaged dangerous goods may require IMDG compliance; road, rail and air legs have their own rules.
Read the source: IMO · Solid bulk cargoes ↗ · IMO · Verified gross mass ↗ · UK Government · Dangerous goods ↗
Read the source: Environment Agency · Material and waste status ↗
Build a cost bridge from the quoted delivery basis to the buyer’s destination. Include only costs not already contained in the purchase price. Keep recoverable tax and financing timing separate from product margin.
| Cost layer | Ask before accepting a quote |
|---|---|
| Origin and main freight | Which collection point, mode, quantity basis, surcharge and validity date are included? |
| Destination charges | Are terminal handling, clearance, release and final delivery included? |
| Insurance and taxes | What is insured? Which duty and tax treatment applies to this classification and origin? |
| Delay and equipment | What free time applies? Who pays storage, container demurrage/detention or vessel demurrage? |
| Inspection and finance | Who pays testing, surveys, bank charges and funding during transit? |
In container shipping, demurrage commonly concerns containers retained inside a terminal beyond free time; detention commonly concerns equipment retained outside it. Storage can be a separate terminal charge. Definitions, combined arrangements and clock rules vary by tariff.
In voyage chartering, demurrage concerns time beyond agreed laytime, subject to the charterparty. It is a different calculation from container charges. Check the actual contract and tariff rather than applying a universal daily rate.
Illustrative inputs, all in USD. This simplified example prices dry material directly; it does not model payable metal or treatment charges.
Dry tonnes = wet tonnes × (1 − moisture ÷ 100). Total = dry-tonne purchase cost + entered additional costs. Import VAT, currency movements and financing are excluded unless explicitly entered as additional non-recoverable costs. Duty is a user-entered amount, not a tariff calculation.
Read the source: Maersk · Demurrage and detention terms ↗
Example: FCA [full warehouse address], Incoterms® 2020. The seller loads the buyer’s collecting vehicle and handles export clearance. Risk passes at that delivery event. The buyer arranges onward carriage. The contract still needs separate payment, title, product and sampling terms.
Example: CIF [named destination port], Incoterms® 2020. The seller pays the agreed freight and insurance, but transit risk passes when the cargo is on board at origin. A loss at sea is not automatically the seller’s risk simply because freight was prepaid. Check coverage and the claims process.
Example: DAP [full receiving address], Incoterms® 2020. The seller bears transport risk to arrival ready for unloading. The buyer handles import clearance and import duties and arranges unloading. With DPU, the seller would also unload; with DDP, the seller would handle import obligations.
| Term | Meaning |
|---|---|
| WMT / DMT | Wet metric tonnes / dry metric tonnes. Keep moisture basis explicit. |
| FCL / LCL | Full container load / less-than-container load service. FCL does not mean the box is filled to maximum weight. |
| ETA / ETD | Estimated arrival / departure. Estimates can change. |
| VGM | Verified gross mass of a packed container, including its tare. |
| TML | Transportable moisture limit, relevant to applicable solid bulk cargoes. |
| Laytime | Contractually allowed time for loading or discharge in a charterparty. |
| Assay | Analytical result for a sample, interpreted with sampling method and basis. |
| Consignee | Party named to receive goods under the transport document. |
| Freight forwarder | Party arranging transport and related services; it may also contract as a carrier. |
Read the source: ICC · Incoterms® 2020 ↗ · HMRC · Importing into the UK ↗ · IMO · Solid bulk cargoes ↗ · IMO · Verified gross mass ↗
Educational overview. Apply the current rules, contract and cargo-specific requirements to each shipment or project; this is not a substitute for specialist advice.