Freight Knowledge Base Centre

Resources and FAQs on freight forwarding for logistics and supply chain professionals

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What is Line of Credit?

Line of credit can be defined as a credit facilitated by banks or any other financial institutions to a government or a business or an individual where the credit can be withdrawn by the entity when funds are needed.

What are the important payment terms used in EXIM?

  • Clean Payments
  • Payment Collection of Bills in International Trade
  • Letter of Credit L/c

Why is Insurance necessary in EXIM Trade?

Export Credit Insurance or ECI ≈ Export Credit Insurance or ECI protects against the risk of non-payment by a foreign buyer. If one's company is an exporter or importer, or both, then having the relevant insurance cover in place is important to make sure there is continued success of the firm in the future.

How is insurance calculated in EXIM?

The premium of a marine insurance policy depends on the following factors:

  • The nature and value of the goods that are being transported
  • Applicable freight incurred for transportation
  • Any inherent risk in the goods
  • The route being taken for the voyage
  • The sort of vessel that is being used for transportation and its construction
  • The destination of the goods
  • Political risks, riots, commotion or unrest which might impact the delivery of goods
  • Natural calamities that may occur – Floods, high tides, etc.

The premium of marine insurance varies on a case to case basis and it is not universal.