(1) Definition of the port of shipment and the port of destination. The port of shipment, also known as the port of loading, refers to the port where the goods are initially shipped. The port of destination, also known as the port of discharge, refers to the port where the goods are finally discharged. As for non-water transport, the places of departure and discharge are the place of shipment and the place of destination respectively.
(2) Methods for specifying the port of shipment and the port of destination. Since the goods are usually shipped in the seller’s country, in order to facilitate the seller to arrange the shipment of the goods and meet the buyer’s needs to accept or resell the goods, the port of shipment is usually proposed by the seller and determined with the buyer’s consent. Similarly, since the goods are discharged in the buyer’s country or a third country designated by the buyer, the port of destination is usually proposed by the buyer and determined with the seller’s consent.
There are three common methods for specifying loading and unloading ports.
① Specify one port of shipment and one port of destination. This is a very common method of provision, for example: “Port of Loading: Qingdao, China. Port of Destination: Rotterdam, Netherlands.” This method of provision is very clear and not prone to disagreement. Therefore, in international sales contracts, if possible, this method of provision should be used as much as possible. ② Specify multiple ports of shipment and/or ports of destination. Sometimes, according to actual business needs, two or more ports of shipment and ports of destination can be specified respectively. For example, the following provisions: “Port of Loading: Dalian/Qingdao/Shanghai, China. Port of Destination: London UK/ Hamburg German/Rotterdam Netherlands.” ③ Optional Ports. When negotiating a transaction, if it is difficult to clearly specify one or more ports of shipment, the method of optional ports can be adopted. There are two ways to specify the optional ports. One is to choose one from two or more ports, such as “Port of destination – London, UK, Optional port – Hamburg, Germany/Rotterdam, Netherlands, or Port of unloading – London, UK/Hamburg, Germany/Rotterdam, Netherlands”, as shown in the following example:
“Port of Loading: Dalian/Qingdao/Lianyungang, China. Port of Destination: London UK, Optional ports – Hamburg German/Rotterdam Netherlands.”
The other is to generally specify a certain shipping area as the port of loading or the port of destination, such as “Main ports along the Mediterranean coast”, “Main ports in Europe”, etc., as shown in the following example:
“Port of Loading: Chinese main ports. Port of Destination: European main ports.” When using the optional port clause, it is important to note that the number of optional ports specified should not be too many, generally not more than three, and these ports should be in the same shipping area, on the same route, and should try to be basic ports. It is also necessary to clearly stipulate the time limit for the other party to make the final choice (usually the shipowner is notified 48 hours before the goods arrive at the first selected unloading port). When calculating the price and freight, the highest rate among the alternative ports should be used. The additional freight, insurance and other risk costs due to the choice of port shall be borne by the other party.