The Importance of a Cargo in Transit Clause

3d pen on paper - terms and conditions

Not every country in the world has a sea port. As a matter of fact, there are quite a few landlocked countries where you might wish to send a shipment. Depending on where in the world your destination is, this can mean shipping across multiple international borders.

Compliance with International Law

When you are attempting to ship cargo through multiple inland countries, you will want to make sure you are aware of and in compliance with the laws of every country your cargo will pass through.

Noncompliance with the laws of any one country can mean that your shipment gets delayed, or worse, is not allowed through. This can add cost, delays or ultimately mean that your shipment does not reach its destination.

Cargo in Transit

In conjunction with legal compliance, your cargo must also have a Cargo in Transit clause fixed to its Bill of Lading or its cargo manifest.

When your cargo arrives at a seaport that is not in the country it is bound for, that country needs to be aware that your cargo is not going to be used or consumed in their country. This will allow it to pass through the port without being subject to customs controls in that country. Your cargo should be able to move along to the destination country without delay.

Cargo without a CIT clause on the manifest can experience quite a few problems, the worst being a denial to cross the international border at your gateway port.

In other cases, the recipient of the cargo might need to travel from the country that they are in to the country where the cargo was stopped at customs. This could be costly to a client you are selling to, even more costly to you if you are shipping to a subsidiary.

Not to Be Confused with Transshipment

Sometimes cargo that is being transported through one country to another is referred to as being transshipped or in transshipment. This is incorrect.

Transshipping means goods are shipped to one port of call, then moved from one ship to another to go back out to sea and arrive at a third port.

Shipping Methods for Cargo in Transit

Cargo in transit manifests can be used for any combination of shipping modes that you or your shipping line find best suits the cargo. Using transloading services, like those offered by Cratex Group, are an ideal way of having cargo arrive at a sea port, then be transferred directly to train or truck to arrive at the final destination.

For further information about cargo in transit clauses or transloading services in general, contact Cratex Group today!