Know Exactly Where Responsibility Shifts
Incoterms 2020, explained in plain English.
Incoterms define exactly when cost and risk pass from seller to buyer in an international shipment – and misunderstanding them is a common source of disputes and unexpected costs. Here’s a plain-English breakdown of the current Incoterms 2020 rules.
What We Handle
Rules for Any Mode of Transport
- EXW – Ex Works: Buyer takes on almost all responsibility, from the seller’s premises onward
- FCA – Free Carrier: Seller delivers goods to a carrier named by the buyer
- CPT – Carriage Paid To: Seller pays freight to destination; risk transfers once handed to first carrier
- CIP – Carriage & Insurance Paid To: Same as CPT, plus seller arranges insurance
- DAP – Delivered at Place: Seller delivers, ready for unloading, at named destination
- DPU – Delivered at Place Unloaded: Seller delivers and unloads at named destination
- DDP – Delivered Duty Paid: Seller handles everything, including import duties, to buyer’s door
Rules for Sea & Inland Waterway Transport
- FAS – Free Alongside Ship: Seller delivers goods alongside the vessel at the port
- FOB – Free on Board: Risk transfers once goods are loaded onto the vessel
- CFR – Cost and Freight: Seller pays freight to destination port; risk transfers at loading
- CIF – Cost, Insurance & Freight: Same as CFR, plus seller arranges insurance
Industry Insight
Not Sure Which Term Applies to You?
Choosing the right Incoterm affects your cost, risk and paperwork. We can walk you through it for your specific shipment.