Incoterms (International Commercial Terms) are standard trade definitions most commonly used in international freight contracts. They are essential for clarifying the tasks, costs, and risks associated with the transportation and delivery of goods. Here’s an overview of key Incoterms 2024 to guide you through your next international transaction:

EXW (Ex Works)

• The seller makes the goods available at their premises. The buyer is responsible for all transportation costs and risks.

FCA (Free Carrier)

• The seller delivers the goods to a carrier or another person nominated by the buyer at the seller’s premises or another named place.

CPT (Carriage Paid To)

• The seller pays for transporting the goods to the specified destination. However, the risk is transferred to the buyer once the goods are handed over to the first carrier.

CIP (Carriage and Insurance Paid To)

• Similar to CPT, but the seller also has to insure the goods for transport.

DAP (Delivered At Place)

• The seller delivers when the goods are placed at the buyer’s disposal on the arriving means of transport ready for unloading at the named place of destination.

DPU (Delivered at Place Unloaded)

• The seller delivers and unloads the goods at the named place of destination.

DDP (Delivered Duty Paid)

• The seller delivers the goods to the buyer, cleared for import, and ready for unloading at the named place of destination.

FAS (Free Alongside Ship)

• The seller places the goods alongside the buyer’s vessel at the named port of shipment.

FOB (Free On Board)

• The seller loads the goods on board the buyer’s vessel at the named port of shipment.

CFR (Cost and Freight)

• The seller must pay the costs and freight necessary to bring the goods to the named port of destination.

CIF (Cost, Insurance & Freight)

• Similar to CFR, but the seller must also procure and pay for the insurance.

Understanding these terms is crucial for smooth international trade transactions. They define the responsibilities of buyers and sellers, helping you make informed decisions and manage risks effectively. For specific advice on which Incoterms to use in your transactions, please consult with our logistics experts.