Indications and firm offers

Commercial shipping indications and firm offers are two essential tools used in the shipping industry. Indications are non-binding communications that provide information about a potential shipping arrangement and are used to initiate negotiations between a shipper and a carrier. Firm offers, on the other hand, are binding communications that offer a specific shipping arrangement at a specific price and are used to finalize shipping arrangements once negotiations have been completed.

Commercial shipping indications can include information such as:

• The type of cargo
• The loading and discharging ports
• The desired charter period
• The freight rate
• Any special requirements, such as temperature control or hazardous cargo handling

Firms typically use indications to gauge interest in a potential shipment and to get a sense of the market rate. Once they have received a number of indications, they can begin to negotiate with the shippers to finalize a shipping arrangement.

Firm offers typically include all of the information that is included in a commercial shipping indication, as well as the following:

• The specific ship that will be used for the shipment
• The exact loading and discharging dates
• A payment schedule
• Any other relevant terms and conditions

Once a firm offer has been accepted by a shipper, both parties are legally bound to the agreement. This means that the carrier is obligated to provide the shipping service at the agreed-upon price and the shipper is obligated to pay for the service.

Here are some examples of how commercial shipping indications and firm offers are used in the real world:

• A shipping company may issue a commercial shipping indication to a number of potential customers to gauge interest in chartering a tanker to transport oil from the Middle East to the United States.
• A freight forwarder may issue a commercial shipping indication to a number of potential airlines to get a sense of the market rate for shipping a package from China to the United States.
• Once a shipper has received a number of commercial shipping indications, they can begin to negotiate with the carriers to finalize a shipping arrangement.
• Once the shipper and carrier have agreed on all of the terms and conditions of the shipment, the carrier will issue a firm offer to the shipper.
• If the shipper accepts the firm offer, both parties are legally bound to the agreement and the shipment can proceed.

Commercial shipping indications and firm offers are essential tools for shippers and carriers alike. They help to ensure that both parties are on the same page and that the shipping process is smooth and efficient.