Incoterms
Understanding International Trade Terms
Navigate Global Trade with Confidence
Incoterms – short for International Commercial Terms – are globally recognized rules that define the responsibilities of buyers and sellers in crossborder transactions. Published by the International Chamber of Commerce (ICC), these 11 terms outline how costs, risks and logistics responsibilities are shared – ensuring clarity from the moment goods leave the seller to when they reach the buyer.
Understanding Incoterms isn’t optional for companies operating in global markets – it’s essential. We help you demystify these rules to avoid costly missteps and optimize your international trade strategy.
Avoid Misunderstandings
Incoterms eliminate ambiguity by clearly defining who handles shipping, insurance, customs and risk – minimizing disputes and delays.
Price Accurately
Understand how Incoterms impact landed cost, so you can price your goods with full visibility into transport, duties and insurance.
Manage Risk
Know exactly when and where risk transfers from seller to buyer – so you can plan coverage accordingly.
Stay Compliant
Navigate country-specific import/export laws and align your operations with international regulations.
Terms
Applicable to All Transport Modes
- EXW (Ex Works): Buyer assumes responsibility at the seller’s location.
- FCA (Free Carrier): Seller delivers to a carrier; risk transfers at that point.
- CPT (Carriage Paid To): Seller pays transport to destination; risk passes at origin.
- CIP (Carriage & Insurance Paid To): Like CPT, but seller also provides minimum insurance.
- DAP (Delivered at Place): Seller delivers to buyer’s named location; risk transfers upon arrival.
- DPU (Delivered at Place Unloaded): Seller is responsible until goods are unloaded at the destination.
- DDP (Delivered Duty Paid): Seller assumes all responsibility for transporting the goods until they reach an agreed-upon destination.
Applicable to Water Transport Only
- FAS (Free Alongside Ship): Seller delivers goods dockside at the port.
- FOB (Free On Board): Seller loads goods on the vessel; risk transfers at that point.
- CFR (Cost and Freight): Seller pays to the destination port, but risk transfers at origin.
- CIF (Cost, Insurance & Freight): Like CFR, but includes minimum insurance coverage.
MAREX Incoterms Consulting & Training
We offer hands-on Incoterms training and strategic consulting to help your team manage international transactions with confidence. Whether onsite or virtual, our sessions are tailored to your operation – so you understand how each term impacts your contracts, logistics and bottom line.
