If you’re in global trade, you’ve likely come across Incoterms. But what do they really mean for your shipping and responsibilities? Cargo People is here to simplify it.
What are Incoterms?
Incoterms (International Commercial Terms) are standardized trade terms defined by the International Chamber of Commerce (ICC). They outline who is responsible for shipping, insurance, customs clearance, and risk at various stages of the journey.
Why Incoterms Matter in Freight Shipping
- Avoid legal disputes
- Clarify responsibilities
- Reduce shipping risks
Common Incoterms Explained:
1. EXW (Ex Works)
The buyer takes on all responsibilities from the seller’s premises onward.
2. FOB (Free on Board)
The seller handles everything until the goods are loaded onto the vessel. The buyer takes over from there.
3. CIF (Cost, Insurance & Freight)
The seller covers the cost, insurance, and freight to the destination port. Risk transfers at the port of shipment.
4. DDP (Delivered Duty Paid)
The seller takes full responsibility including customs duties—ideal for buyers who want a hassle-free experience.
How Cargo People Helps
We advise our clients on the most beneficial Incoterms for each shipment, helping you save costs and prevent misunderstandings.
Understanding Incoterms can simplify your shipping and improve your bottom line. With Cargo People, you don’t just ship—you ship smart.
Need help choosing the right Incoterm? Talk to our freight experts today.
