String Sales
From Supply Chain Management Encyclopedia
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In contracts for the sale of "commodities", as opposed to manufactured goods, it is often the case that a cargo is on-sold a number of times during transit (i.e. a ''string sale''). In such situations, sellers in the middle of the string do not ship the goods, as the goods have already been shipped by the seller at the top of the string. As such, the obligation on sellers in the middle of the string is to procure goods that have been shipped. The new INCOTERMS clarify this by including an obligation to "''procure goods shipped''" as an alternative to the obligation to ship goods. | In contracts for the sale of "commodities", as opposed to manufactured goods, it is often the case that a cargo is on-sold a number of times during transit (i.e. a ''string sale''). In such situations, sellers in the middle of the string do not ship the goods, as the goods have already been shipped by the seller at the top of the string. As such, the obligation on sellers in the middle of the string is to procure goods that have been shipped. The new INCOTERMS clarify this by including an obligation to "''procure goods shipped''" as an alternative to the obligation to ship goods. | ||
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Revision as of 10:26, 17 July 2011
In contracts for the sale of "commodities", as opposed to manufactured goods, it is often the case that a cargo is on-sold a number of times during transit (i.e. a string sale). In such situations, sellers in the middle of the string do not ship the goods, as the goods have already been shipped by the seller at the top of the string. As such, the obligation on sellers in the middle of the string is to procure goods that have been shipped. The new INCOTERMS clarify this by including an obligation to "procure goods shipped" as an alternative to the obligation to ship goods.
