Most standard forms of contract stipulate that
natural loss in weight exceeding a certain percentage is to be refunded by the
sellers. This is known as the weight franchise. Coffee is hygroscopic, which
means that it attracts or loses moisture depending on climatic conditions. It
may therefore lose a little weight during storage and transport. To counter this
weight loss, a number of exporters have traditionally packed a little more per
bag than they invoice. This helps to ensure that arrival weights are as close to
the agreed shipping weight as possible. Buyers know from experience what losses
in weight to expect from most origins and take this into account when
calculating the cost landed destination or roasting plant. However, shipping in
bulk has greatly reduced weight losses and such a franchise is no longer
necessary.
Net shipped weights: the weights established
at the time of shipment are final, subject of course to the stipulations of the
underlying standard form of contract. Under an FCA contract the parties can also
agree that the net delivered weight be final together with the procedures and
conditions that shall apply.
Net delivered
weightsor net landed weights:
the goods will be reweighed upon arrival and final payment will be made on the
basis of the weights then established.
If buyers are suspicious about the accuracy of the
shipping weights they may require an independent weigher to supervise the
weighing. Sellers may stipulate the same when selling basis net delivered
weights or when weights are disputed and reweighing is ordered.