Complete Guide to Shipping incoterms
Master the language of international trade with Amico Freight Solutions.
Shipping Incoterms Explained:
What Every Shipper Should Know:
Shipping incoterms, or International Commercial Terms, go beyond the jargon of the shipping industry. They set the global standard for the shipping and freight process, outlining responsibilities, risks, and costs for both sellers and buyers. Understanding them is crucial to ensuring transparent, efficient, and effective international trade.
The Importance of Incoterms
In the world of international trade, a single misunderstanding can result in delayed shipments, increased costs, and potential legal complications. This is where incoterms come into play. By providing a universally accepted definition for shipping responsibilities, they eliminate ambiguity and set clear expectations for all parties involved.
Incoterms Overview & Responsibilities
| Incoterm | Description | Exporter/Seller Responsibility | Importer/Buyer Responsibility |
| EXW (Ex Works) | Makes the goods available at their premises or another named place. | Goods provision at own location | Loading, transportation, insurance, unloading, import duties, and onward transport |
| FCA (Free Carrier) | Delivers goods, cleared for export, to a named place. | Goods provision, export duties, and delivery to named place | Transportation after named place, insurance, unloading, import duties, and onward transport |
| CPT (Carriage Paid To) | Delivers goods to a carrier or named place of shipment. | Goods provision, export duties, and transportation to named place of shipment | Transportation after named place, insurance, unloading, import duties, and onward transport |
| CIP (Carriage and Insurance Paid To) | Delivers goods and pays for carriage and insurance to the named place of destination. | Goods provision, export duties, transportation, and insurance to named destination | Transportation after named place, unloading, import duties, and onward transport |
| CIF (Cost, Insurance, Freight) | Delivers goods to a named port of destination and covers cost, freight, and insurance. | Goods provision, export duties, transportation to port of destination, and insurance | Unloading, import duties, and onward transport |
| CFR (Cost and Freight) | Delivers goods and pays costs to bring the goods to the port of destination. | Goods provision, export duties, and transportation to port of destination | Insurance, unloading, import duties, and onward transport |
| DDP (Delivered Duty Paid) | Delivers goods to a named place in the buyer’s country, covering all risks and paying duties and taxes. | Goods provision, export/import duties, transportation, insurance, delivery to final destination | Unloading |
| DPU (Delivered at Place Unloaded) | Delivers goods and transfers risk to the buyer once the goods have been unloaded at the named place of destination. | Goods provision, export duties, transportation, unloading at named place | Insurance, import duties, and onward transport |
| DAP (Delivered at Place) | Delivers goods, ready for unloading, to the buyer at a named place. | Goods provision, export duties, transportation to named place | Insurance, unloading, import duties, and onward transport |
| FAS (Free Alongside Ship) | Delivers goods, cleared for export, alongside a vessel at a named port chosen by the buyer. | Goods provision, export duties, delivery alongside ship | Loading, transportation, insurance, unloading, import duties, and onward transport |
Why Choose Amico Freight Solutions for Your Shipping Needs?
We specialize in international trade, Amico Freight Solutions is your trusted partner for navigating the complexities of global freight. Our expertise ensures that your goods are shipped in compliance with global standards, ensuring timely delivery and optimal cost efficiency. Reach out to us today and experience seamless international trade.