Shipping & Logistics References
Comprehensive reference guides for international shipping, freight forwarding, and logistics operations
Incoterms 2020
International Commercial Terms published by ICC defining buyer and seller responsibilities in international trade.
Any Mode of Transport: EXW, FCA, CPT, CIP, DAP, DPU, DDP
Sea/Inland Waterway Only: FAS, FOB, CFR, CIF
EXW - Ex Works
Any Transport ModeSeller makes goods available at their premises. Buyer assumes all responsibilities and costs for transportation, export, and import formalities.
Make goods available at seller's premises, packed and ready
All costs and risks from seller's premises to destination, including loading
FCA - Free Carrier
Any Transport ModeSeller delivers goods to the carrier or another party specified by buyer at seller's premises or another named location.
Deliver goods to carrier at named place, export clearance
Main carriage, import clearance, and all costs from delivery point
CPT - Carriage Paid To
Any Transport ModeSeller arranges and pays for transportation to the named destination. Risk transfers when goods are handed to carrier.
Arrange and pay for carriage to destination, export clearance
Risk from handover to carrier, import clearance, unloading
CIP - Carriage and Insurance Paid To
Any Transport ModeLike CPT but seller must also obtain insurance. Requires Institute Cargo Clauses (A) - all risk coverage.
Carriage, insurance (all-risk), export clearance
Risk from handover to carrier, import clearance
DAP - Delivered at Place
Any Transport ModeSeller delivers goods ready for unloading at the named destination. Seller bears all risks until goods arrive.
All costs and risks to destination (unloading excluded), export clearance
Unloading, import clearance, duties and taxes
DPU - Delivered at Place Unloaded
Any Transport ModeSeller delivers goods unloaded at named destination. Replaced DAT in 2020 - destination can be any place, not just terminal.
All costs and risks to destination including unloading, export clearance
Import clearance, duties and taxes
DDP - Delivered Duty Paid
Any Transport ModeSeller bears all costs and risks delivering goods cleared for import with all duties and taxes paid.
All costs, risks, export/import clearance, duties and taxes
Unloading at final destination only
FAS - Free Alongside Ship
Sea/Waterway OnlySeller delivers goods alongside the vessel at named port. Risk transfers when goods are alongside ship.
Deliver goods alongside vessel, export clearance
Loading onto vessel, main carriage, import clearance
FOB - Free on Board
Sea/Waterway OnlySeller delivers goods on board the vessel. Most commonly used term for sea freight.
Deliver goods on board vessel, export clearance
Main carriage from port of shipment, import clearance
CFR - Cost and Freight
Sea/Waterway OnlySeller delivers goods on board and pays freight to destination port. Risk transfers once goods are on board.
Delivery on board, freight to destination port, export clearance
Risk from loading, insurance, import clearance
CIF - Cost, Insurance and Freight
Sea/Waterway OnlyLike CFR but seller must also provide insurance. Requires minimum Institute Cargo Clause (C) coverage.
Delivery on board, freight, insurance (minimum cover), export clearance
Risk from loading, import clearance
