Incoterms®
Difference between CIF and FOB: Incoterms Comparison
Last updated on September 4, 2024 by Ben Thompson
CIF (Cost, Insurance, and Freight) and FOB (Free on Board) are two key terms in international shipping. With CIF, the seller covers transport and insurance until the goods arrive at the destination port. With FOB, the buyer takes over costs and risks once the goods are loaded onto the ship. Knowing these terms helps you…
CIP (Carriage and Insurance Paid To): Incoterm Explained
Last updated on August 28, 2024 by Ben ThompsonCIP (Carriage and Insurance Paid To) is an Incoterm that defines seller and buyer responsibilities in international trade. The seller arranges transportation and insurance up to a specified destination, while the buyer assumes risk once goods are handed to the first carrier. Learn when to use CIP.
FCA vs FOB Incoterms: Differences Explained
Last updated on August 21, 2024 by Ben ThompsonThis article explores the differences between two important Incoterms: FCA (Free Carrier) and FOB (Free On Board). While similar, these terms have key distinctions that impact international trade. You'll learn when to use each term, their benefits, and how they affect logistics, helping you make informed decisions.
Incoterm: Delivered Duty Paid (DDP) Shipping Explained
Last updated on August 17, 2024 by Ben ThompsonDelivered Duty Paid (DDP) is a shipping term where the seller handles all costs and risks, from transport to customs clearance, ensuring the buyer receives goods hassle-free. This guide explains DDP’s benefits, drawbacks, and when it’s the best choice for international trade.
Understanding Ex Works Incoterms
Last updated on August 14, 2024 by Ben ThompsonEx Works (EXW) is an Incoterm® where the buyer handles all logistics from the seller's location, including transport and export. It's ideal for buyers with experience in international trade, but may be too complex for beginners due to the responsibilities involved.
What is CIF (Cost Insurance and Freight) Incoterms?
Last updated on August 13, 2024 by Ben ThompsonCIF (Cost, Insurance, and Freight) simplifies international trade by clearly defining who covers shipping costs and basic insurance. Used mainly for sea transport, CIF reduces disputes by ensuring the seller handles shipping to the destination port, while the buyer assumes risk once goods are loaded.
Delivered at Place (DAP): Incoterms 2020 Explained
Last updated on August 9, 2024 by Ben ThompsonInternational trade can be complex, with various expectations and challenges. The ICC created Incoterms to clarify buyer and seller responsibilities. DAP (Delivered at Place) is one such term. Under DAP, the seller delivers goods to a specified location, and the buyer handles unloading and import duties. This simplifies risk and cost management in shipping.
What Does FOB Mean In Shipping: Free on Board Terms and Meaning Explained
Last updated on May 31, 2024 by Ben ThompsonShipping Incoterms® can be confusing, but understanding them is crucial for smooth international trade. One key term is "FOB" (Free on Board), which defines when the buyer takes ownership and risk for goods. Knowing FOB helps ensure clear roles and responsibilities, making the shipping process more efficient.
DAP, DPU and DDP Incoterms®: Difference & Tips for these Incoterms®
Last updated on May 29, 2024 by Ben ThompsonLearn about DAP, DPU, and DDP Incoterms®! DAP involves seller delivery to a named place, with the buyer handling unloading and import duties. DPU includes seller unloading. DDP covers all costs, including import duties, by the seller. Choose the best term based on control, cost, and expertise.
Incoterms® 2020 Explained – The Complete Guide
Last updated on May 28, 2024 by Ben ThompsonThe International Chamber of Commerce have published new Incoterms® 2020 that have come into effect from the 1st of January 2020. The ICC originally published Incoterms® in 1936 and have continually made updates to reflect the changes to the Global Trade environment. It’s important that all parties involved in trade clearly understand the changes and…
