Expeditors International of Washington, Inc. (EXPD) Earnings Call Transcript & Summary

All right. So it is 10:00, so we'll get started. So for those of you who have just joined, thank you for joining us today for our Incoterms Basics webinar. As you can see, we have a poll for you to answer. And my name is Sarah Mass, and I am the Regional Sales Operations and Marketing Lead for the Midwest, and I am based in Minneapolis, and I'll be your webinar host for today. So before we begin, please review our short webinar disclaimer. You can see that on the next slide. And then I do want to cover a couple of items to note before we get started. So today's webinar will be about 60 minutes in length. There will be about 45 minutes of content presented with 15 minutes at the end for Q&A. We will address as many questions at the end of the webinar as possible. But if we don't get to your question, we will follow up after to make sure that it's answered. So as shown on the screen, today's webinar will be recorded, and you will receive a pop-up notification alerting you that the recording has started in just a moment. And after the webinar concludes, you will receive an e-mail, which includes a short survey that we would like you to complete with your feedback. And then after you complete the survey, you will receive an e-mail with the landing page link to the presentation material. So we're still recording and I'd like to introduce our speaker for today's Incoterms Basics webinar. Jamie Childress is our Regional Risk and Insurance Manager for the North Central region, and she is based in our Cleveland office. Jamie has been with Expeditors for 19 years, and she has held multiple roles within the Cleveland District. She has her bachelors in communication from Cleveland State University, and she started out in our customs brokerage department. And then for the past 12 years, she has been a part of the account management team. And then a little over a year ago, she took the leap into risk and insurance and she hasn't looked back. And Jamie also has her IATA FIATA certification. So one last reminder that all questions should go into the Q&A window. And with that, I'll turn it over to Jamie.

All right. Thanks, Sarah. Hello, everybody. I want to thank you for joining the webinar today as we talk through the Incoterms basics. I was sharing with the team today that I was practicing with my son last night, who's 11. And I said, do you want to learn about Incoterms? And he was like, sure, just put it up on the TV. Let's go through the presentation. I said, okay. And after about 10 minutes of trying to get it on to the TV, I could not figure it out and ask him for help. And then he shared -- asked me how long is this going to take? And I was like, it's about 45 minutes of content. And he said, "I don't think I can sit through that. And it's like, I don't blame you, but just hang in there. So I'm asking all of you out there to hang in there with me as we jump into the world of Incoterms. I promise we'll have some jokes in there, and it will be very informative. So for those of you who are familiar, who are not familiar, Expeditors in our global network. We were founded in 1979. We are a non-asset-based organization with over 340 office locations globally and with 18-plus employees in counting. As I head into my 20th year, I can tell you it's -- there is not one person that will not help you out in this network. So it's good to have this giant network of connections. And we're located in 100-plus countries. We are traded on the New York Stock Exchange as EXPD. So some of you may be familiar with our wholly owned subsidiaries such as Cargo Signal, Tradewin. We also have Expeditors Cargo Insurance broker, which we referenced as ECIB. This is another wholly owned subsidiary of Expeditors. We are a specialty broker in this avenue where we only work with cargo insurance and claims management as a TPA. So very, very niche. We are focused on marine cargo insurance. We don't worry or deal with so much as the property and casualty, workers' comp, but ECIB is specific in that cargo lane. We're licensed in the U.S., Mexico and Amsterdam. We have operational teams in Seattle and Amsterdam. And our team at corporate, our cargo claims team handles roughly over 27,000 cargo claims annually. And this can be claims such as liability claims, insurance claims, so all the different types of claims that we see. So what are we looking at here? This is the API and beyond. And in 2020, it encountered some rough waters, which ultimately about roughly 1,800 containers had to be thrown overboard. And then it had to -- it was on its way from China to Los Angeles. When it encountered the rough seas, it had to divert and go to Kobe, Japan, where they could fix the containers that had fallen. So in addition to those 1,800 containers that were thrown overboard, there were roughly about 1,000 additionally that were damaged that need to be removed from the vessel once the freight arrived in Japan. It's been about 3 months being worked and getting those containers offloaded. So you're probably wondering what helps guide those -- what helps decide the cost, the risk obligation between the buyer and seller when something like this happens, when it's on its voyage, right? Well, I will give you a hint. It's Incoterms. That's what we're talking about today. So Incoterms is designed to help decide between the buyer and the seller who's responsible for the cost, risk and obligation of the cargo in transit. So what I want to show here is this is a pretty simple supply chain, right? The goods -- seller manufactures the goods, puts it on the truck, it gets to the consolidator and it moves along the supply chain. Once the main carriage is finished, then on the destination side, same thing, unload it off the vessel, move throughout the process. And what's important to call out here is this is reflecting a simple supply chain, but it's also reflecting that there are many touch points within your supply chain. So it's very important to understand who's responsible for that cost, the risk, the obligation. And this is where we will get into more in depth of Incoterms. And I think we have a poll to put up here. So since the inception of Incoterms in 1936, how many revisions have been made? 4, 6, 8 or 2, Infinity and beyond is what buzzlayer likes to say. Give it another minute or so, get those answers in. [Voting]

All right. So with that, the poll looks like we've got a fair spread here. But if you guessed 8 or if you answered knew correctly 8, then you were spot on. So we'll get into depth here on those Incoterms. Okay. So Incoterms is international commercial terms, first developed by the International Chamber of Commerce in 1936 and then revised an additional 8 times as noted in the poll. So with that, we've noticed a cadence of about every 10 years. So we anticipate 2030 seeing some revisions there. And these Incoterms are comprised of 3 letters: EXW, FOB, DDP. I'm sure all of you are pretty familiar with those terms. And again, the purpose of the Incoterms rules is to provide that interpretation of who's responsible between the buyer and the seller for that cost, that risk and that obligation. So what don't Incoterms do? They are not law. If they are to be held up in the court of law, it's important to call those out and be as specific as possible in the contract, whether that be the sales order or purchase order. Calling that out specifically would be very important. They do not address passage of title. They do not address recognition of revenue. drop shipments. They do not really come into play with drop shipments. It is a question we get -- a common question that we receive. Drop shipments because they're so complex, we highly recommend that it is important to put that out every step whose responsibility is what within the contract because there are different legs and different processes that are followed when you're working on drop shipments. And again, if there's any additional conversation that you would like to have surrounding drop shipments, I definitely can be contacted and we can work to discuss that further. So how do you use Incoterms properly? There are 11 total terms. only 11, 7 of which are omnimodal, which means they can be used for planes, trains, automobiles, and 4 of which are ocean only. They're helped to facilitate trade. And again, I'm going to sound like a broken record here, but it divides the cost, the risk obligation between the buyer and the seller. It reduces the potential for misunderstanding. And what I mean by that is making sure that you're putting in detail when you're calling out the Incoterm and its name place, you want to be as specific as possible. For example, if you were to say FCA Cleveland, is that Cleveland, Ohio; Cleveland, Georgia; Cleveland, Tennessee, it's important to call out that as specific as possible, okay? You'll see that last note that says the Incoterms plus nameplace point report and Incoterms 2020. This is very specific, right? It's even calling out the Incoterms 2020 because there are cases where some terms have been removed from Incoterms, but companies are still able to use that if they call out, say, for example, Incoterms 2010. That's something as long as you're as specific as possible, I mean, the better. And you can use those older terms as well. So these are the classes of the Incoterms. So these are all 11 Incoterms called out. So we have the 7, which are for all modes of transportation. And then you have the 4 in the bottom, which are ocean only, okay? For those ocean-only Incoterms, it's one thing I would like to point out is the mode of transport that falls underneath those ocean-only terms. So for example, for CIF, this rule is to be used only for sea or inland waterway transport where more than one mode of transport is to be used. Now I'll break that down a little bit, where more than one mode of transport is to be used. So take, for example, you have freight leaving your warehouse and you're contracting a trucker to pick up that freight who's then going to take it to the CFS or rail yard and then is going to turn it over to the port. There are multiple modes of transport being used in that case when you're looking at CIF, okay? So where more than one mode of transport is to be used, which will commonly be the case where goods are handed over to a carrier at a container terminal like I just walked through, the appropriate rule to use is CIP rather than CIF, okay? So goods that are in containers, it's recommended that you use one of the omnimodal terms. Now nobody panic because I know I've gotten this question in the past because we do see FOB used quite often in the ocean world. And that's okay. Again, these are not law. These are just rules to help with the facilitation of trade, and there are guidance notes to help ensure that you're using the Incoterm for the mode of transport that you are using. So an example of when you would use the ocean-only terms, say, for FOB would be where there were bulk loading of containers. So that container is going to already be the vessel and you're actually loading the freight on board the vessel. That's a good case of ocean only. That was a lot of information. So any questions, feel free to add into that Q&A, and we will try to get to those or reach out after. So now we're going to dig into each of those 11 Incoterms. EXWorks will be the first one that we'll go through. But before I get into that, I wanted to touch base on looking at the E and the F terms and the C and the D terms, the E and the F terms, you want to look at the main carriage is always going to be paid for by the buyer. So kind of think of that as in your collect terms. Those C and D terms, the name place is going to be at destination with the main carriage being paid for by the seller, okay? So I will go in and then EXWorks. So if we look at the arrow, and we'll see that arrow kind of travel a little bit as we get through all the Incoterms. But looking at this EXWorks, so that name place is going to be on the seller side, which means the buyer is responsible for the cost of risk and obligation at the seller's facility, okay? There is no obligation on the seller in this case to organize the export clearance. That would be the buyer's responsibility. There's also the loading, the loading of the freight at the seller's facility. That would be the responsibility of the buyer. So there is a risk there that risk transfers over to the buyer. And what I want to point out here is I know that you have specific contracts and relationships with your sellers. So when using EXWorks, yes, if you have that relationship and the seller has the capability and to load the cargo, we do see that. So you have a relationship with your seller, you're working on getting that loaded, but just knowing that, that responsibility falls on the buyer is something I just want to point out. FCA. So your name place is going to be on the seller side again here. And again, that arrow where between the seller's facility and the carriage to the -- to customs to the port, that arrow can slightly move, whether it be at the seller's facility or the CFS, but know that the seller is responsible to get it to that name place and responsible for those charges. And once arrived at that name place, the buyer's cost risk and obligation sets in, and they are responsible for the final piece. And the seller, in this case, would be responsible for the export clearance. CPT. Okay. So this one, we can see the line has changed a bit, right? We have 2 arrows that we're working with. And it is the seller's responsibility to -- for handling the risk to that name to the carriage paid to that first point of contact. So that first point of carriage, that risk is going to transfer over to the buyer. And then the seller is responsible to get the freight to the name place on the buyer side, so the cost and obligation. And from there, that transfers, the cost and obligation transfers from the seller to the buyer. CIP. So CIP is similar to CPT, except the buyer is requesting the seller purchase insurance on their behalf. One note that we like to call out here is if you're dealing -- you have a shipment coming from China to the U.S., right? And the buyer here in the U.S. is saying you need to purchase insurance on my behalf. You're dealing with insurance companies. If something were to happen, loss or damage while in transit, then you're dealing with an insurance company that is in a foreign country. I know it can be challenging trying to figure that out and understanding the requirements or what is needed. So just one thing that we like to share when looking in that. But this is similar to CPT, just insurance is requested to be purchased on the buyer's behalf. DAP. So DAP, that nameplace will be on the buyer side. And so the seller is responsible to get it to that name place, okay? So they're responsible for the cost, the risk, the obligation, all the way to that name place on the buyer side. From there, the risk, the cost obligation transfer over to the buyer. So the buyer is responsible to get it to that -- their warehouse, their final destination. So DPU, DPU has -- also has the name place on the buyer side, delivered at place, so that name place, but the seller is responsible for unloading of the freight. The buyer is responsible for the clearance. So the seller is not responsible for that, but they are responsible to get that unloaded at that name place. So that is where that communication really needs to come into play between the buyer and the seller to understand is everything in place for its clearance so that the seller can move forward with unloading of the freight. So definitely key so that there's no misunderstanding, right? Okay. So DDP, DDP, I could spend -- I could give so many examples on this one. But DDP is basically that nameplate will be on the buyer side. The seller is going to take care of everything, the whole kit and caboodle. Everything is going to be the seller's responsibility, including duty. So what I'd like to share here is if you look at it from U.S. going into China, for example, if you're exporting out of the U.S. or Madagascar or wherever, are you aware of the duty rate on pencils into Madagascar? I asked my son this, and he didn't know. And he kind of looked at me like a Dear headlights and I was like, you're not supposed to know what the duty rate in Madagascar of pencils is. So no pressure. I don't know the duty rate. We can find out certainly. But my point here is when you're exporting into a foreign country or some that you're not familiar with, you don't necessarily know all the like country requirements. That's very important. Some countries could require you to have an entity in there to be able to import into and pay the duty or obtain the duty back, right? So it's definitely something to consider when using DDP, if you're going to be going into a foreign country, you want to understand those countries' requirements, right? And then similar to reverse that, right? If you're coming out of a foreign country into the U.S. and you're saying DDP and you talk to your seller and your seller says, "Hey, I'm going to send this freight to you, DDP, I will take care of everything. You'll get your freight in a month's time, that month comes and goes and where's the freight, right? So there's a lack of visibility as well when using that DDP. So it's important, again, communication between the buyer and seller and really understanding what's being signed up for there. So now we'll get into the ocean-only terms. So we're heading into the last 3 -- or I'm sorry, the last 4 Incoterms. So FAS is free alongside ship. So it is the responsibility of the seller to make sure that the freight is delivered at the port alongside ship, okay, safely. And that is where the risk, the cost and obligation then transfer over to the buyer. FOB, that nameplate will be on the seller side. So it's the responsibility of the seller to get the cargo safely onboard the vessel where that cost risk and obligation then transfers over to the buyer, so CFR. So again, we've got that broken arrow, right? It is the responsibility of the seller to get it safely alongside the ship. That risk would then transfer over to the buyer. And then after they would be -- the seller would be responsible for the cost and the obligation of that main carriage to that name place on buyer side, where then that would transfer over to the buyer and the buyer would be responsible for the customs clearance, the final delivery inland to their warehouse. CIF. So similar to CPT and CFR, the buyer is requesting insurance to be purchased on behalf of them. So again, the challenges we talked about earlier with having to work with an insurance company in a foreign country, not understanding regulations, just something to be aware of, but just having that communication between the buyer and the seller is really important when working with CIF. Some additional information. One thing I did want to call out, and hopefully, you can see this, it's not blurred, is the Incoterms -- that's okay, Incoterms book. I purchased it on Amazon. It's a very -- I mean, it's a book that I hold near and dear and don't let anybody take, okay? Because it is just so helpful. It breaks down, I mean, the rules of the seller, the rules of the buyer, it really just breaks apart each Incoterms. I highly recommend having at least one copy within your facility to be able to reference. Again, I'm always here as a reference as well, but I definitely recommend this book. And again, the drop shipment reminder, I'm happy to talk further if anybody has any questions because I know that is a common question we get. What -- how do Incoterms work with drop shipments because there are so many different legs and you've got people in the U.S. and then working with 2 other countries, it can get complicated. So I'm definitely here for help and guidance. Okay. So we have another poll here before we get into carrier liability. How do you currently handle your risk? This is a question that we love to understand and ask our customers. We are -- day-to-day, our operations teams are working with your freight and your questions, and we want to understand how that risk is handled so that we know and can update our internal SOPs, right, so that we know what next steps to take or have the conversation. So really important to understand how companies handle their risk. Do you purchase it transactionally? Do you have a policy layered approach? Or do you take that risk in-house, right? So we'll give another minute or so. [Voting]

All right. Let's see the answers. Okay. So buy from a forwarder, I have a policy. Okay, a good spread. Thank you for sharing. All right. So now we'll get into carrier liability. And this is something that we enjoy sharing our knowledge -- excuse me, there you go, freight carrier legal liability. So carriers are allowed to limit their liability. And these are the standards in the industry that we follow, Expeditors follows, and it's broken out by mode, okay? And an important note to make here is carriers must be negligent in causing the damage in order to be held liable, okay? So what are those limits of liability look like? International Ocean is limited to $500 per customary freight unit or if you've heard customary shipping unit. What does that mean? So -- and what is a customary shipping unit? Customary shipping unit is basically the smallest number listed on the bill of lading, okay? So for example, you have one container with 12 pallets, 1,500 boxes, okay? The carriers, if found liable, are going to look at, okay, there is only one container because that's the smallest number listed on the bill of lading, right? So they could, if found liable, provide up to $500 per that container. Now I'm going to go out on a limb and say that most containers are valued over $500 in the freight world. So it's not a lot. And they're allowed to limit their liability because, again, they charge based on the space and the weight and not the value of the goods. right? International air is limited to 22 SDR per kilo, which SDR stands for special drawing right, and it's about an average of 6 different currencies that equate to USD 30 per kilo, okay. And then trucking and warehousing, the standard liability is $0.50 per pound. And then for warehousing is $50 per lot max. I also like to say this, joke. I have this from one of my mentors, $50 per lot max, what's a lot? It's more than a little. But no, what's a lot is basically that pallet position. So think about if you're in the warehousing and you're moving a pallet in a pallet out, you could -- if there was damage loss or damage, you could only get $50 per lot. Okay. So again, just to bring that home, the value and the type of goods has no impact on the freight charges or the carrier's liability. So they charge based on the space and the weight, not the value of the goods. Okay. Now you guys might have seen the explosion following this, but we'll get into this. One thing that we like to share some pictures because they're very impactful, right? Cargo at rest is cargo at risk. I say that all the time. I never thought I'd be saying that as much as I do now, but here we are. what happened here, right? There was a container of magnesium on board the vessel. And for those of you who don't know or are knowing now, when magnesium gets wet, it can cause quite an explosion. So the vessel on the water carrying these containers managed to get wet and an explosion occurred because of that. All right. This vessel had a couple of containers full of fireworks on it that ignited while in transit. And as you can see at top, the vessel, the container actually flew or exploded rather, right to the top of the vessel. So definitely not a great day for this vessel. So this one -- this vessel encountered some rough waters as well. This also reminds me of another vessel from 2013. It was the MOL comfort. And for those of you who don't remember, don't fall, the MOL comfort had snapped in half due to rough waters, rough weather with 1/2 sinking. And by the time they got a tugboat out there to get the other half, that was still flow. It ended up sinking. So it was a total loss. So it's -- we're all familiar with what can happen. Bad things happen to good cargo, right? There was a vessel that went into the Baltimore bridge. We definitely see things happen. One of the questions I do get in this role is how many containers a year fall into the ocean or have to get thrown overboard, right? And I was like that's a really good question because what does that number look like? So I looked it up and I got an average of about 1,382 containers on average. So it's 1,382 containers a year, okay? And do they get recovered? The answer is no. So there's containers that are hanging on the ocean floor and some who -- some containers that don't just sink to the bottom right away have to be shot so that they can sink to the bottom. But yes, unfortunately, they sink to the floor and they are never retrieved. So think about that. That's -- it's a lot of containers every year, right? So we talk about ocean carriers not liable, right? When are they not liable? Some of these make sense. There are 17 reasons, right? Some of these make sense, Active God, active war. What we see why they won't be liable is insufficiency of packaging. So some containers will -- or the parts that you're shipping, carriers will say, well, it wasn't packaged for ocean voyage, right? Or wasn't packaged correctly to make the flight, right? So these are 17 reasons. So if 1 through 16 don't apply, the carriers will then invoke #17, which is a very long run-on sentence. And basically, it's saying that the burden of proof is on the person claiming. So who's ever filing that claim, you have to prove why they were not liable. Because again, they do not take the value of the goods into account. It is -- they charge based on the space and the weight. Another example of a bad day, right? This cargo was sitting on the tarmac, the engine revved up and sucked it right in, cargo at rest, right, cargo at risk. So this one, I did ask my son about last night as well, and I said, what do you think went wrong here, right? Let me get an 11-year-old perspective. I said, do you think he went too fast? Do you think they didn't package it correctly for the road? What happened? And my son's answer was, well, basically, it was packaging hands down because they didn't latch it correctly for the packaging. But he also said that if they need to package it in case the truck has to go super fast, okay. But yes, it was a little bit of both, right? The turn was taken too fast and it wasn't latched down 100%. So the packaging definitely came into play there. in this one, I really like to share this picture just to really ask the folks, if we were in a room together, what were they thinking? It's not -- I mean, safety and security advisers would probably come running in. You've got your insurance people running in. You've got just probably everybody hands on, not the safest, right? It's important to understand within our world of supply chain, right, how is the risk being managed? Do we have the right Incoterms in place? Are we using them correctly? Are we -- do we have coverage? What if something goes wrong, right? We have insurance for our cars, our facilities, right, are we covered for our cargo? Just all things to make sure that we're communicating and having those conversations between the sellers and the buyers. So it's very, very important to understand how are you handling your risk because right here, this picture, they are not handling their risk in the best way. They are being risky as ever. And I'll just leave you with cargo at rest is cargo at risk. And we are here to help support in any way we can. Question, we are here.

All right. Thank you, Jamie. We'll go into the Q&A portion, and I'll just start reading some of the questions that have been submitted. And just a friendly reminder that if we do run out of time and we don't get to your question, we will follow up with you after to make sure that it gets answered. Okay. So Jamie, one of the first questions we got, I think it was regarding the APIs image that you were showing at the beginning of the presentation. And I think you were referencing throwing containers overboard to lighten the load. We had a question come in that said, what do you mean by throwing overboard? Is that what you were referring to or...

Yes, yes. [Indiscernible] if there's damaged containers or if it's not seaworthy, they may have to remove some of those containers off the vessel in order to continue on with the voyage.

Thank you. The next question. So when loading containers, this particular individual had an issue in China is that loading when loading is placing items in the container but not blocking and bracing. We've never run into this before with vendors loading and blocking and bracing. Has this changed with the Incoterms 2020?

I can take this one offline and reach out just to get some more clarification on that one.

Under FCA terms, is the shipper responsible for loading the vehicle as well as export clearance?

So for FCA, that would be -- so the export clearance would be on the seller as well as arranging to that nameplate, so that trucking to that nameplace.

With CIP, can you explain who files the claim with the carrier?

Sure. So the buyer would be requesting the seller to purchase insurance on our behalf. So the buyer would then be working with the insurance company to file that claim with whom the seller chose as their insurance carrier.

What is more popular or common? Is it DAP or DPU? And can you explain why?

Yes. So DAP is something that we see that is most common delivered and place because with DPU, that seller is responsible for the unloading. But where it can get kind of tricky is with DAP, it's at that place and then it transfers. With DPU, you go to the name place and the seller is still responsible for the unloading, but not the customs clearance. So you as the buyer have to handle the clearance and then make sure you're communicating with the seller. So I would say DAP is definitely more common.

Can you explain the difference between FOB and ocean air and if they're generally interchangeable?

So again, FOB, kind of what we talked about as far as being an ocean-only term for -- if you want to use the same type Incoterm, we suggest FCA because that can be used for both air and ocean. FOB really, if you're moving containerized freight, we'd really want to look at FCA. And if there's additional questions, we can certainly talk to that offline.

Jamie, one of the attendees called out that it's interesting that trucking and warehousing liability is per pound and not per kilo as air freight. Can you explain why?

Yes. So in the U.S., I mean, in the domestic world, we typically are working in pounds versus kilos because it's not international.

Can you clarify the difference between what is considered the real weight and what is considered the dimensional weight?

So the dimensional weight, and I can confirm on this, but once you have all the packaging together, it's going to have what takes up that most space for the regular weight, that would be your goods only and then dimensional weight will be once it's packaged for movement.

Can you circle back to that FOB breakdown that you spoke about a few minutes ago and explain exactly when carriers, ocean carriers are liable under FOB terms?

So liable -- so as far as the 17 reasons why they wouldn't be liable, is that -- let me see here. Okay. there's 17 reasons why the carriers would not be liable. But for -- typically, when we see they're liable, if they drop freight, right, drop the containers. I mean that was negligent and that caused damage. So that's where we would see them being liable.

I know you answered one -- which of the Incoterms were more popular between DAAP and DPU, I think. But are there other select Incoterms that are commonly used worldwide? Or does it depend on where you're shipping, what you're shipping, et cetera?

Yes. I think it definitely depends on the contracts that you have with -- between the buyer and the seller, what makes sense for your business. But we see EXWorks used a lot. We see FOB, FCA, DDP don't see -- I don't see too much. But again, it depends -- it really just depends on your business model.

When should you use FAS versus FOB port?

So again, this will be between the buyer and the seller where that risk would transfer either at the port or once it's done with its main carriage, right? So that would be based upon the contract that you have within your company.

Going back to that APIs 1 image again, do you know how it's determined which cargo is discarded overboard? Do they just look at the containers towards the top? Can you explain or have more details about that?

Sure. Yes. So it's -- it really -- it depends on the situation, but however they can lighten their load, right, they're going to take the top containers, what makes sense. If there's damaged containers that are not seaworthy, they would decide that. But it's basically up to the captain of the ship, right, to decide how to make the vessel seaworthy and continue with its voyage. So I can follow up as well and provide some additional insights as to where and how exactly to decide.

With EXWorks, is the seller still responsible for creating the export documentation?

Yes. Yes.