Importance of Incoterms in International Transport

When you close an international deal, one of the most important questions to address is what incoterms to use in your contract for the shipping of the goods. As you may know, the most common types of incoterms used in export and import contracts are in CFR or FOB terms. This means that the exporter is not responsible nor guarantees the expenses incurred at destination. However, if the conditions are DDU or DDP, costs are charged to the export destination.

All of the procedures relating to the management of the import of goods in the destination ports can often be a long process and can involve additional expenses. For that reason, prior to export under these conditions, it is important to know how many days the shipping company will hold your goods before they add additional charges to avoid expenses upon arrival. It is never advisable to ship under these condition as any impediment can cause unforeseen liabilities and expenses.

The iContainers team recommendation is to avoid shipping under DDU and DDP conditions except when shipping between countries in Europe and North America. Before undertaking an ocean freight export shipment it is recommended that you contact our shipping experts who will help you determine what type ocean freight shipping you need, whether it is FCL shipping or LCL shipping.

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