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Incoterms

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

CPT Incoterm (Carriage Paid To)

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 and payment of the cost of international …

CFR Incoterm (Cost and Freight)

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)

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)

What is the DAP Incoterm (Delivered at Place) The DAP Incoterm, or “Delivered at Place”, replaces the now outdated DDU Incoterm, or Delivery Duty Unpaid, which appeared in the previous Incoterms …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

What is the DAT Incoterm (Delivered at Terminal) The DAT Incoterm or “Delivered at Terminal” replaces the now outdated DES Incoterm (Delivery at Ship) and DEQ Incoterm (Delivered at Quay) rules, which …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

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)

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)

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)

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)

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)

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 …

What are Incoterms

What are Incoterms? Incoterms, short for International Commercial Terms, are three-letter trade terms established by the International Chamber of Commerce to facilitate cross-border trade. The latest …