Who is responsible for the shipment, and where it changes hands

The agreed shipping terms decide which parts of the journey the maker and the brand arrange and pay for, and the exact handover where responsibility for loss or damage passes. A maker may pay for transport all the way to the destination while the brand carries the risk for much of that journey.

Read the shipping agreement with the route beside it.

01Paying for the journey and carrying the risk are separate agreements

Shipping terms divide the work of moving the clothes. They cover the handover, transport arrangements and customs formalities, as well as the allocation of costs and the documents needed for transport. The International Chamber of Commerce publishes the rules described here. The order should identify the chosen rule, its edition and the precise place or port to which it applies.

The point called delivery in those rules can be well before the clothes arrive at the brand's address. It might be collection from the maker or loading onto a ship. Responsibility for loss or damage passes at the delivery point set by the chosen arrangement. Write that point out in ordinary words alongside the formal contract wording.

Payment needs its own agreement. These shipping rules do not set when the maker gets paid, when ownership changes or a guaranteed arrival date. They also leave the clothes themselves to a separate agreement: the measurements, materials and finish still need approval, along with the packing and the standard production will be checked against.

An agreed shipping arrangement cannot replace the document that tells the maker what to make.

02Collection from the maker can put loading and export work with the brand

An arrangement described as collection from the maker can begin with the finished boxes being made available at an agreed place. Under that arrangement, the maker has no obligation to load the collecting vehicle or complete the export paperwork. The brand takes responsibility when the clothes are made available, with collection and onward transport still to organise.

That leaves work at the starting point as well as at the destination. Confirm who will load the boxes and who will handle the formalities for taking them out of the country. The International Chamber of Commerce describes this arrangement as primarily suitable for domestic trade and points to a different handover arrangement where the brand may have difficulty completing export formalities.

The alternative can put loading and export paperwork with the maker. When the agreed handover is at the maker's premises under that arrangement, the maker loads the vehicle booked by the brand. Responsibility for loss or damage passes when loading is complete.

Write the loading arrangement into the order. If the maker is loading and handling export paperwork, the chosen shipping rule should describe that work accurately, and the transport booking should carry the same instruction.

03A transport company's collection and loading onto a ship are different handovers

For clothes travelling in a container, the boxes may be handed to a transport company at a warehouse, an inland depot or a container terminal. A shipping arrangement based on that handover can describe the journey more precisely than one based on the clothes being placed aboard a ship. Under the carrier-handover arrangement, responsibility passes when the clothes are delivered to the brand's chosen transport company at the agreed place. The brand arranges the main journey and the import process, and checks the insurance needed after that handover. Name the full collection address or the exact depot or terminal in the order.

A separate arrangement puts the handover on board the ship at the named departure port. Responsibility passes once the clothes are aboard. That arrangement is limited to sea or inland waterway transport; it cannot describe every shipment method.

Choose between these by tracing where the maker's delivery work ends. Clothes going by sea do not automatically require an on-board handover. If the maker delivers boxes to a terminal before they reach the ship, ask the company arranging transport to confirm which rule matches that movement before the finished order is released.

04Maker-arranged shipping can leave the brand carrying risk before arrival

Some arrangements put the booking and payment for the main journey with the maker, together with an obligation to arrange insurance. The named destination tells you how far the maker pays for transport. Responsibility for loss or damage can pass much earlier.

Under Cost, Insurance and Freight (CIF), the maker delivers the clothes when they are on board at the departure port. The maker pays for transport and the required insurance to the named destination port. The risk has already passed at departure. Paying for the sea journey does not extend the maker's responsibility for damage to arrival.

A corresponding arrangement available across transport methods puts the handover at the first transport company. The maker still pays for transport and insurance to the agreed destination. Where the journey uses more than one transport method, identify that first handover clearly.

Ask for the booking details and insurance evidence before the clothes move. Keep the destination being paid for beside the point where risk passes, with each written separately. Also confirm any destination costs left out of the transport booking. A quote that includes the main journey can still leave work and charges for the brand when the clothes reach the other end.

05Insurance needs checking against the route and the right to claim

An obligation to arrange insurance does not settle every question about a damaged shipment. The maker-arranged sea journey and the arrangement available across transport methods have different default levels of cover. The latter requires a higher default level. Check the policy or certificate for the cover that applies to the actual order.

Read it against the agreed handover and the route. Confirm who is named or entitled to claim, and whether the insured journey covers the movement being booked. Ask the insurer about exclusions and any additional cover needed beyond the default required by the shipping arrangement.

The amount insured also needs checking, alongside the documents and notification requirements for a claim. Keep that evidence with the order so the shipping agreement and the insurance can be read together. A statement that the shipment is insured leaves these questions open until the policy or certificate answers them.

Where the brand books transport after collecting from the maker, record who will arrange any insurance needed from the point responsibility passes. Where the maker books transport, obtain the insurance evidence from the maker.

06Delivery to the final address can still leave unloading to be agreed

The broadest delivered arrangement keeps responsibility with the maker through transport to the named destination. The maker handles export, transit and import customs formalities, including import duty and applicable taxes under the rule. Delivery occurs when the clothes are available to the brand at that destination, ready for unloading.

Ready for unloading is a specific boundary. The arrangement does not require the maker to unload unless the contract adds that work. If the delivery agreement is to include unloading, put it in the order and the delivery instructions so the maker and the receiving team have the same instruction.

Before accepting this arrangement, establish who will be formally named as the importer where that applies. Confirm how customs clearance will happen and who receives the customs entry, the record of that clearance. Ask what the destination delivery excludes.

Local tax obligations, rules applying to the clothes and requirements applying to the importer need checking with a local adviser and the person handling customs clearance. The shipping rule cannot settle those questions. Give them the proposed arrangement and destination before agreeing the order, so their answers can be reflected in the contract and transport instructions.

07Compare the same destination and keep the booking aligned with the order

Bring each quote to the same final address before comparing it. Start with identical assumptions about the clothes and their packing. Changes to fabric, construction or the agreed quality work can change the comparison before shipping is considered. Then add the work left with the brand under each quote. A collection quote can leave loading, export paperwork and transport to be added, followed by insurance where needed and destination costs. A quote covering the main journey can still leave import clearance and delivery from the arrival port. Confirm unloading separately when comparing delivered quotes.

Use a worksheet to record each included or excluded task and who will arrange it. Beside the shipping agreement, keep the full handover address and the receiving address. The transport company also needs the date the boxes will be ready, their count and total weight, plus the booking reference, collection contact and latest time for the boxes to arrive for the booked departure.

Update the instructions when the order changes. A different box count, packing method or delivery point can alter transport and handling. If responsibility for booking moves between the brand and maker, amend the shipping agreement and send the revised instruction to the transport company and receiving team before release.