Key Takeaways for Businesses
- FOB (Free On Board) and CIF (Cost, Insurance & Freight) remain the most popular maritime shipping terms.
- EXW (Ex Works): Minimal obligation for the seller; buyer bears all risks and costs from factory gate.
- DDP (Delivered Duty Paid): Maximum seller responsibility, delivering directly to buyer’s premises with import duties fully paid.
Incoterms (International Commercial Terms), published by the International Chamber of Commerce (ICC), standardize the division of tasks, costs, and risks between buyers and sellers in international trade.
Group E – Departure: EXW (Ex Works).
Group F – Main Carriage Unpaid by Seller: FCA (Free Carrier), FAS (Free Alongside Ship), FOB (Free On Board).
Group C – Main Carriage Paid by Seller: CFR (Cost and Freight), CIF (Cost, Insurance and Freight), CPT (Carriage Paid To), CIP (Carriage and Insurance Paid To).
Group D – Arrival: DAP (Delivered at Place), DPU (Delivered at Place Unloaded), DDP (Delivered Duty Paid).
Practical tip: Always specify the chosen rule alongside the designated port or place and the Incoterms version, for example: "FOB Cat Lai Port, Incoterms 2020".
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