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Incoterms

Incoterms meanings and advice on choosing the best incoterm for your ocean freight

CPT Incoterm (Carriage Paid To)

Using the CPT incoterm Under the CPT Incoterm or “Carriage Paid To”, the seller is responsible for bringing the goods to destination and payment of the cost of international freight. …

CFR Incoterm (Cost and Freight)

What is the CFR Incoterm? The CFR Incoterm or “Cost and Freight” is an incoterm that is exclusive to maritime shipping. It states that the seller is not only responsible for delivering the …

CIF Incoterm (Cost, Insurance and Freight)

What is the CIF Incoterm The CIF Incoterm, or “Cost, Insurance and Freight”, is exclusive to shipping and indicates that the seller is responsible for the cost and freight of bringing the …

DAP Incoterm (Delivered at Place)

What is the DAP Incoterm (Delivered at Place) The DAP or “Delivered at Place” Incoterm replaces the now outdated DDU Incoterm, or Delivery Duty Unpaid, which appeared in the previous …

DAT Incoterm (Delivered at Terminal)

Using the DAT Incoterm The DAT Incoterm or “Delivered at Terminal” replaces the now outdated DES Incoterm (Delivery at Ship) and DEQ Incoterm (Delivered at Quay) rules, which appeared in …

DDP Incoterm (Delivery Duty Paid)

What is the DDP Incoterm The DDP Incoterm or “Delivery Duty Paid” Incoterm states that the seller must make the goods available to the buyer at a prearranged location (buyer’s …

EXW Incoterm (Ex Works)

How does the EXW Incoterm (Ex Works) work? When using EXW Incoterm or Ex Works, the seller is obliged to prepare the goods for collection at his premises (office, warehouse, factory, etc.) to be …

FAS Incoterm (Free Alongside Ship)

What does the FAS Incoterm mean? The FAS Incoterm or “Free Alongside Ship” is exclusive to shipping. Under the FAS Incoterm, the seller must deliver the goods alongside the ship, at the …

FCA Incoterm (Free Carrier)

What is the FCA Incoterm The FCA Incoterm or “Free Carrier” states that the seller must deliver the goods, ready for export, to the buyer’s chosen carrier at an agreed-upon location. …

FOB Incoterm (Free on Board)

What is the FOB Incoterm In ocean freight, the FOB Incoterm, or “Free on Board”, is an Incoterm exclusive to shipping. It states that the seller must load the goods onto the ship chosen by …

CIP Incoterm (Carriage and Insurance Paid to)

Using the CIP Incoterm The CIP Incoterm or “Carriage and Insurance Paid to” states that the seller is responsible for bringing the goods to destination and the payment of the cost of …

What are Incoterms?

What are Incoterms? Incoterms, short for “international commercial terms”, are a set of pre-defined international rules published by the International Chamber of Commerce which determine the …