What are Incoterms?
Incoterms - a.k.a. Trade Terms are key elements of international contracts of sale. They tell the parties what to do with respect to carriage of the goods from buyer to seller, and export & import clearance. They also explain the division of costs and risks between the parties.
The ICC has launched the Incoterms 2020, which is effective from the 1st of January 2020. The Incoterms 2020 does not contain major changes, it is providing more clarity on how to use the Incoterms. The most important difference is in the Incoterms 2020 a new Incoterm DPU (Delivered at Place Unloaded) replaces the Incoterms DAT (Delivered at Terminal). The place of destination can be any place and does not have to be a terminal.
What does this all mean?
Here is a simple explanation of all terms:
For All Modes of Transport
EXW - Ex Works (...named place of delivery)
FCA - Free Carrier (...named place of delivery)
CPT - Carriage Paid To (...named place of destination)
CIP - Carriage And Insurance Paid To (...named place of destination)
DPU - Delivered At Named Place, Unloaded (named address/place of destination)
DAP - Delivered At Place (...named address/place of destination)
DDP - Delivered Duty Paid (...named address/place of destination)
Ocean Transportation Only
FAS - Free Alongside Ship (...named wharf/seaport)
FOB - Free On Board (...named wharf/seaport of shipment)
CFR - Cost And Freight (...named wharf/seaport of destination)
CIF - Cost Insurance And Freight (...named wharf/seaport of destination)
INCO Terms get updated periodically. The full current list of INCO Terms (2020) is available for purchase on the ICC website. Download Mainfreight's Incoterms 2020 Quick Reference Guide here.
Request a service quote
Request an Air or Ocean service quote here. Our team of experts are ready to meet your supply chain needs.Request a quote
Ask a question
Do you have a question about our services or want more information on our supply chain solutions? Get in touch with one of our local team members today.Submit an enquiry
Find a local branch
Find a branch near you and talk to a local team member about how we can help with your business' needs.Contact Us