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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 Mode

Seller makes goods available at their premises. Buyer assumes all responsibilities and costs for transportation, export, and import formalities.

Seller Responsibility:

Make goods available at seller's premises, packed and ready

Buyer Responsibility:

All costs and risks from seller's premises to destination, including loading

FCA - Free Carrier

Any Transport Mode

Seller delivers goods to the carrier or another party specified by buyer at seller's premises or another named location.

Seller Responsibility:

Deliver goods to carrier at named place, export clearance

Buyer Responsibility:

Main carriage, import clearance, and all costs from delivery point

CPT - Carriage Paid To

Any Transport Mode

Seller arranges and pays for transportation to the named destination. Risk transfers when goods are handed to carrier.

Seller Responsibility:

Arrange and pay for carriage to destination, export clearance

Buyer Responsibility:

Risk from handover to carrier, import clearance, unloading

CIP - Carriage and Insurance Paid To

Any Transport Mode

Like CPT but seller must also obtain insurance. Requires Institute Cargo Clauses (A) - all risk coverage.

Seller Responsibility:

Carriage, insurance (all-risk), export clearance

Buyer Responsibility:

Risk from handover to carrier, import clearance

DAP - Delivered at Place

Any Transport Mode

Seller delivers goods ready for unloading at the named destination. Seller bears all risks until goods arrive.

Seller Responsibility:

All costs and risks to destination (unloading excluded), export clearance

Buyer Responsibility:

Unloading, import clearance, duties and taxes

DPU - Delivered at Place Unloaded

Any Transport Mode

Seller delivers goods unloaded at named destination. Replaced DAT in 2020 - destination can be any place, not just terminal.

Seller Responsibility:

All costs and risks to destination including unloading, export clearance

Buyer Responsibility:

Import clearance, duties and taxes

DDP - Delivered Duty Paid

Any Transport Mode

Seller bears all costs and risks delivering goods cleared for import with all duties and taxes paid.

Seller Responsibility:

All costs, risks, export/import clearance, duties and taxes

Buyer Responsibility:

Unloading at final destination only

FAS - Free Alongside Ship

Sea/Waterway Only

Seller delivers goods alongside the vessel at named port. Risk transfers when goods are alongside ship.

Seller Responsibility:

Deliver goods alongside vessel, export clearance

Buyer Responsibility:

Loading onto vessel, main carriage, import clearance

FOB - Free on Board

Sea/Waterway Only

Seller delivers goods on board the vessel. Most commonly used term for sea freight.

Seller Responsibility:

Deliver goods on board vessel, export clearance

Buyer Responsibility:

Main carriage from port of shipment, import clearance

CFR - Cost and Freight

Sea/Waterway Only

Seller delivers goods on board and pays freight to destination port. Risk transfers once goods are on board.

Seller Responsibility:

Delivery on board, freight to destination port, export clearance

Buyer Responsibility:

Risk from loading, insurance, import clearance

CIF - Cost, Insurance and Freight

Sea/Waterway Only

Like CFR but seller must also provide insurance. Requires minimum Institute Cargo Clause (C) coverage.

Seller Responsibility:

Delivery on board, freight, insurance (minimum cover), export clearance

Buyer Responsibility:

Risk from loading, import clearance

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