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See our glossary of shipping terms for a glossary of port and shipping terms with an overall international shipping terms glossary.
Confused by Shipping Terms? Use our easy to understand Shipping terms definitions in our glossary.
Oct 2, 2023 · Don't be overwhelmed by the hundreds of international shipping terms. We've published a glossary of more than 250 trade terms used by importers and exporters. Bookmark this page and refer to it when you stumble across a word or acronym that has you stumped.
International Commercial Trade Terms, or Incoterms for short, are selling terms buyers and sellers use so they can communicate which party is responsible for the tasks, costs, and risks associated with transferring the goods to the buyer when trading internationally.
- What Are Incoterms?
- How Incoterms Impact Your Shipping Cost
- List of All 11 Incoterms
- 2020 Incoterms
- 2020 Incoterms Rules For Any Mode of Transport
- 2020 Incoterms For Sea and Inland Waterway Transport
- 2010 Incoterms
- Using 2010 Incoterms After 2020
- Incoterms For Air Freight
- Why Are Incoterms Important in 2024?
Freight incoterms (International Commercial Terms) are the standard terms used in sales contracts for importing and exporting. They are used to define responsibility and liability for goods over the course of a shipment. In other words, they spell out when responsibility for the goods transfers from the supplier to the buyer. They also define who p...
You can use our freight rate calculator to help you decide how different incoterms will impact your freight cost. For example, when shipping EXW, you’ll be responsible for the added cost of getting your goods from your supplier to the seaport or airport. Simply choose container, box, or pallet shipping, enter your dimensions and weight, and you’ll ...
EXW – Ex Works:The seller’s responsibility is to make the goods available for pickup at the warehouse or factory. From that point forward, the buyer assumes responsibility for all costs and risks....FCA – Free Carrier:The seller is responsible for delivering the goods to the carrier at a named place, which is usually the terminal or a warehouse. Once the goods are handed over to the carrier, t...CPT – Carriage Paid To:The seller is responsible for the costs of transporting the goods to a named destination. Responsibility transfers to the buyer once the goods are delivered to the agreed-upo...CIP – Carriage and Insurance Paid To:This incoterm is the same as CPT except that with CIP, the seller much also arrange and pay for insurance coverage in case of loss or damage to the goods during...The 2020 Incoterms, updated from the 2010 Incoterms, are a set of international trade terms that define the responsibilities and obligations of buyers and sellers when shipping goods. They are designed to facilitate smooth and efficient international trade by providing standardized rules for the delivery of goods, payment, risk transfer, and other ...
Whatever mode of transport you use – sea, air, road, or rail – you’ll need to choose your incoterm. However, not every incoterm can be used for every mode. The following seven incoterms can be used for both ocean and air shipping: 1. EXW – Ex Works 2. FCA – Free Carrier 3. CPT – Carriage Paid To 4. CIP – Carriage and Insurance Paid To 5. DAP – Deli...
These four incoterms can be used for sea and inland waterway shipments only: 1. FAS – Free Alongside Ship 2. FOB – Free On Board 3. CFR – Cost and Freight 4. CIF – Cost, Insurance, and Freight
The International Chamber of Commerce (ICC) updates incoterms every ten years or so. Prior to 2020, the last update was in 2010. The 2010 version was largely similar to the 2020 version. However, in 2020 some changes and clarifications were made to better reflect modern trade practices and technology.
It is generally advisable to use the most current set of Incoterms – that is, the 2020 Incoterms. These updated terms are designed to reflect modern trade practices and provide more clarity and specificity, which can help reduce misunderstandings and disputes in international trade. However, it is not prohibited to use the 2010 Incoterms if both th...
Incoterms commonly used for air shipments are: EXW (Ex-works), in which the buyer assumes responsibility at the seller’s warehouse and takes care of everything including transportation and insurance. CIP (Carriage and insurance), which puts responsibility for insurance on the seller. CPT (Carriage Paid To), in which the seller delivers the goods an...
Importers and exporters should consider which incoterms is best for them before the contract of sale is negotiated. This can prevent surprise costs and unnecessary complications. Choosing an incoterm means getting on the same page as your supplier – it aligns everyone on shipping procedures when multiple parties and stakeholders are involved. These...
Mar 1, 2024 · We’ve put together this shipping glossary chart to help you navigate the international shipping. Certainly, you must understand them to be successful in shipping and global trade. Also, note that you can enter your freight terms and shipping abbreviations in the search bar at the top.
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Aug 27, 2024 · Incoterms, short for International Commercial Terms, are a set of globally recognized trade terms developed by the International Chamber of Commerce (ICC). They are used to provide a common language and understanding of the responsibilities, costs and risks in the transportation and delivery of goods.
