Sopisco News edited by Nova Media Publishing Inc.-Panama, is a weekly publication for the exclusive use of its subscribers who are aware that the information supplied, is not supported by any official institution such as commodities exchanges, mercantile exchanges, freight exchanges etc. Sopisco News is addressing sectors involved in the banana industry, exporters, traders, logistics, transportation, government bodies, analysts and public entities in general. The publication delivers referential selling prices of bananas in the international spot markets, freight rates related to the banana transportation as well as news for the interested subscribers. Being bananas not a commodity negotiated in trading or agricultural exchange boards, price information is obtained verbally from market sources, from traders, or market watchers of places where exports or sales originate.
On occasions Sopisco News reports prices offered by sellers to buyers which might then differ from the actual prices finally agreed between sellers and buyers depending also on volumes traded.
In the case of freight rates for banana cargoes, fixtures do not reflect terms of Charter Parties or Contracts of Carriage but are obtained from information circulated among brokers.
Although Nova Media Publishing Inc. considers it’s sources to be reliable, cannot guarantee the accuracy and therefore the following disclaimer published within each issue must be taken into consideration:
“THIS NEWSLETTER IS PUBLISHED WEEKLY BY NOVA MEDIA PUBLISHING INC., PANAMA / AND SENT WORLDWIDE FOR THE CONFIDENTIAL USE OF THE SUBSCRIBERS. COPYRIGHT 1995 BY NOVAMEDIA PUBLISHING INC., FACTUAL MATERIAL IS OBTAINED FROM SOURCES BELIEVED TO BE RELIABLE, BUT THE PUBLISHER IS NOT RESPONSIBLE FOR ERRORS OR OMISSIONS CONTAINED HEREIN. RIGHTS OF REPRODUCTION AND DISTRIBUTION ARE RESERVED TO THE PUBLISHER.…”
There are different modalities of purchase and sales for bananas in the international trade, regulated mainly by the Incoterms 2010 which include terms such as:
FOB, CFR, CIF, FAS, DDP, DAT, DAP, etc. under which the purchase and sale of fruit could be arranged. Due to the different modes of negotiations among the participants, prices published by Sopisco News-Nova Media Publishing Inc. could show significant differences according to the specific sale agreements as per Incoterms or other international regulations. There are mayor differences according to the cases, per fruit Delivered at the Terminal (DAT) or Delivered at Place like the case of a wholesale retailer could be (DAP) and for ripened fruit.
The referential prices published by Sopisco News-Nova Media Publishing Inc., for the United States, Europe, Mediterranean countries, Ukraine, Russia and other markets are based on the Incoterms 2010 rules which are more adapted to the moderns trade than its previous editions. Prices published for the USA and EU markets particularly refer to the spot prices of bananas sold each week and do not reflect prices for sales under contracts for one, two or more years, which in the case of some countries might represent up to 90% of the fruit sales and where in most cases prices agreed are lower than the spot market prices. Prices under contract may have terms very different from those of the bananas sold on spot basis during the period of the year taken into consideration.
The following rules apply for sea and inland waterway transportation according to INCOTERMS 2010:
FAS Free Alongside Ship
FOB Free on Board
CFR Cost and Freight
CIF Cost, Insurance and Freight
Rules for any mode or modes of transport:
EXW Ex Works
FCA Free Carrier
CPT Carriage Paid to
CIP Carriage and Insurance Paid to
DAT Delivered at Terminal
DAP Delivered at Place
DDP Delivered Duty Paid
“Free Alongside Ship” means that the seller delivers when the goods are placed alongside the vessel (e.g. on a quay or a barge) nominated by the buyer at the named port of shipment.
“Delivery At Place” means that the seller delivers when good are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the name place of destination. The seller bears all risks involved in bringing the goods to the named place.
“Delivered Duty Paid” means that the seller delivers the goods when the goods are placed at the disposal of the buyers, cleared for import on the arriving means of transport ready for unloading at the named place of destinations, as the cost and risks to point are for the account of the seller.
Large volumes of bananas are nowadays transported by container and there are in general other costs involved after the delivered FAS.
In the case of containers it is typical for the seller to hand the goods over to the carrier at a terminal and not alongside the vessel. In such situations the FAS rule would be inappropriate and the FCA rule should be used.
Sopisco News mentions generically DDP sales but depending from agreements between sellers and buyers and the different ports or countries two other rules may be applied such as DAT, “Delivered at Terminal” and DAP, “Delivered at Place”.
To know more specifically details of such rules Incoterms edition 2010 might be taken as reference.
In the shipments by containers following additional costs (but not limited to them) might be involved, depending also from the port and the terminal:
1. Terminal handling charges
2. Transit documents from container terminal to shipping location/cold storage location
3. Transport by truck or barge or train from container terminal to shipping/cold storage location surcharges for fuel for the time of transportation.
4. Handling and delivery. Receiving palletized fruit inside warehouse/coldstore, until delivered on truck.
5. Cold Storage in temperature controlled warehouse/coldstore as from the day after intake into the warehouse.
6. Forwarding and customs formalities including basic rate, phyto sanitary inspection, fiscal representation.
7. Additional services such as stickering, labelling, re-packing, reconditioning, Bill of Lading fees, management fees, warehouse fee, terminal fee, drop exams, security filling fee.
8. For ports in the USA additional costs as FDA clearance fee, documentation, agriculture fee to mention some might be involved. The range of all costs in the USA might reach, depending from the port or terminal (if a traditional banana discharging port or not) total upcharges of USD 4.0-5.0 per box depending also on the terms of the sale particularly if the bananas are sold green or ripe and if delivered to the final destination, etc.
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