Understanding Incoterms (International Commercial Terms) is crucial for smooth international shipping. These standardized rules define the responsibilities of buyers and sellers in global trade. Let’s break them down:

🚛 Incoterms for Any Mode of Transport

🔹 EXW (Ex Works) – Seller makes goods available at their premises 🏭; buyer handles everything from there.
🔹 FCA (Free Carrier) – Seller delivers to a carrier chosen by the buyer 🚚.
🔹 CPT (Carriage Paid To) – Seller pays for transport 📦 but risk transfers once handed to the carrier.
🔹 CIP (Carriage & Insurance Paid To) – Seller covers transport & insurance up to the destination 🌍.
🔹 DAP (Delivered at Place) – Seller delivers to the agreed destination 📍; buyer handles import duties.
🔹 DPU (Delivered at Place Unloaded) – Seller delivers & unloads at the destination ⚓.
🔹 DDP (Delivered Duty Paid) – Seller bears all costs, including import duties & taxes 💰.


⚓ Incoterms for Sea & Inland Waterway Transport

🔸 FAS (Free Alongside Ship) – Seller delivers goods next to the ship at the port 🚢.
🔸 FOB (Free on Board) – Seller loads goods onto the ship; buyer assumes risk from there 🏗.
🔸 CFR (Cost & Freight) – Seller pays transport to the port, but risk transfers after loading.
🔸 CIF (Cost, Insurance & Freight) – Like CFR but with insurance coverage added.

✅ These Incoterms help businesses navigate trade by clarifying who pays, who’s responsible, and who takes the risk at each stage of shipping.