I remember early on in my supply chain career going on sales calls with one of our company’s more seasoned sales executives. During one of our calls we met with the logistics manager at a very large OEM company in Southern California. In the meeting my colleague was discussing the OEM company’s air imports and asked if the product was moving into the US under EXW or DDP terms. At the time I had absolutely no idea what the terms were in reference to and why they were important.
Fast forward a few years in my career and my former company had a Sr. Vice President who was passionate about Incoterms and made it a point to make sure each employee in the company was familiar with the terms. He issued a challenge for each employee to take 15 minutes each day to review one of the Incoterms until we became familiar with each one. That lesson has been very important to me in my career as I have held various roles both on the shipper and importer side of the supply chain and a knowledge of the Incoterms has proved invaluable.
Here at 3PLwire we have provided our interpretation of the Incoterms (Incoterms 2000 and currently Incoterms 2010). We hope you find the information valuable and useful as you encounter these terms in your day to day business.
For further detail regarding each individual Incoterm please visit the following links. We have still referenced Incoterms 2000 since many of the Incoterms have remained unchanged, however, please note that the Incoterms 2000 DAF, DES, DEQ, and DDU are no longer valid Incoterms. With the implementation of Incoterms 2010 two new terms were added (DAT and DAP) and the the total number of terms was reduced to 11 from 13.
Please note that our interpretation is provided as a guide only.
Incoterms are published by the International Chamber of Commerce and are available on their website and official publication “Incoterms 2010″. For a complete and official overview please refer to the ICC’s publication.