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Incoterms

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

CIF vs CIP - Explained

When it comes to moving goods from one country to another, international shippers and exporters should know about Incoterms. Incoterms are a collection of agreements defined by the International …

CPT Incoterm (Carriage Paid To) - Use and Meaning

What is the CPT Incoterm (Carriage Paid To) Under the CPT Incoterm or “Carriage Paid To”, the seller is responsible for bringing the goods to destination. Unlike some other Incoterms, the transfer of …

CFR Incoterm (Cost and Freight) - Use and Meaning

What is the CFR Incoterm (Cost and Freight) The CFR Incoterm or “Cost and Freight” is an Incoterm that is exclusive to ocean freight shipping. It states that the seller is not only responsible for …

CIF Incoterm (Cost, Insurance and Freight) - Use and Meaning

What is the CIF Incoterm (Cost, Insurance, and Freight) Incoterms 2010 dictates that the CIF Incoterm, or “Cost, Insurance and Freight”, is exclusive to maritime shipping. Under CIF, the seller is …

DAP Incoterm (Delivered at Place) - Use and Meaning

What is the DAP Incoterm (Delivered at Place) The DAP Incoterm, or “Delivered at Place”, replaces the now outdated DDU Incoterm, or Delivery Duty Unpaid, which appeared in the previous Incoterms …

DAT Incoterm (Delivered at Terminal) - Use and Meaning

What is the DAT Incoterm (Delivered at Terminal) The DAT Incoterm or “Delivered at Terminal” replaces the now outdated DES Incoterm (Delivery at Ship) and DEQ Incoterm (Delivered at Quay) rules, which …

DDP Incoterm (Delivery Duty Paid) - Use and Meaning

What is the DDP Incoterm (Delivery Duty Paid) 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) - Use and Meaning

What is the EXW Incoterm (Ex Works) 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 picked up …

FAS Incoterm (Free Alongside Ship) - Use and Meaning

What is the FAS Incoterm (Free Alongside Ship) The FAS Incoterm or “Free Alongside Ship” is an Incoterm that is exclusive to ocean freight shipping. Under FAS, the seller must deliver the goods …

FCA Incoterm (Free Carrier) - Use and Meaning

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

FOB Incoterm (Free on Board) - Use and Meaning

What is the FOB Incoterm (Free On Board) In ocean freight, the FOB Incoterm, or “Free on Board”, is an Incoterm that’s exclusive to ocean freight shipping. It states that the seller must load the …

CIP Incoterm (Carriage and Insurance Paid to) - Use and Meaning

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