Incoterms 2000

 

How well do you know your Incoterms?

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How well do you know your Incoterms?

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 [...]

Incoterms: DDP – Delivered Duty Paid

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Incoterms: DDP - Delivered Duty Paid

DDP DDP - Delivered Duty Paid - is another useful incoterm that can be used with any mode of transport. It is very similar to DDU except that with DDP the seller is also responsible for all import customs formalities and duty and for final delivery of the goods to the buyer at the named [...]

Incoterms: DDU – Delivery Duty Unpaid

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Incoterms: DDU - Delivery Duty Unpaid

DDU - Delivery Duty Unpaid - Is a fairly common incoterm and can be used for any mode of transport. Under DDU terms the seller is responsible for making the goods available to the buyer at a named place of destination but not cleared for import. The seller is also responsible for all the costs [...]

Incoterms: DEQ – Delivered Ex Quay

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Incoterms: DEQ - Delivered Ex Quay

DEQ DEQ "Delivered Ex Quay" Well here it is the most popular Incoterm of all.....errr actually I have never seen this Incoterm used in my business dealings, but that is not to say that this particular Incoterm is of no value. The DEQ Incoterm is only used for ocean or inland waterway shipments. Under DEQ, [...]

Incoterms: CIP – Carriage and Insurance Paid To

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Incoterms: CIP - Carriage and Insurance Paid To

CIP - “ Carriage and Insurance Paid to “ is an incoterm that is commonly confused with CIF. Unlike it's more common sibling CIF, I rarely see CIP used, with too many companies using CIF for air shipments and other modes of transport when what they really should be using is CIP. CIP, unlike CIF, [...]

Incoterms: CPT – Carriage Paid To

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Incoterms: CPT - Carriage Paid To

CPT “ Carriage Paid To “ is an incoterm that can be used for any kind of shipment. CPT is somewhat similar to CFR and CIF with some differences. In CPT, like CIF, the seller/exporter arranges for the goods to be delivered to the named port of destination. Unlike both CFR and CIF, the seller’s [...]

Incoterms: CIF – Cost, Insurance and Freight

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Incoterms: CIF - Cost, Insurance and Freight

CIF CIF "Cost, Insurance and Freight" is a very commonly used incoterm. This is another incoterm that officially is not supposed to be used for air shipments, but I have seen its usage in both air and ocean shipments. Officially CIF is only to be used for ocean or inland waterway transport. CIF is basically [...]

Incoterms: CFR – Cost and Freight

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Incoterms: CFR - Cost and Freight

CFR CFR "Cost and Freight" is a less recognizable, but actually commonly used incoterm, it is basically a variation of its more recognizable big brother CIF. This is another incoterm that officially is not supposed to be used for air shipments, but I have seen its usage in both air and ocean shipments. Officially CFR [...]

Incoterms : FOB – Free On Board

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Incoterms : FOB - Free On Board

FOB - Free On Board - is a very commonly used Incoterm, particularly in China/Hong Kong and other parts of Asia. While it is supposed to be used only for ocean or inland waterway transport I have seen instances of shippers using it for air shipments as well. There are a number of Incoterms that [...]

Incoterms : More Definitions Coming Soon!!

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Incoterms : More Definitions Coming Soon!!

One of our commenters duly noted that we have been lax in posting Incoterms - hell, we only have about 10 to go!! At this rate we might get done sometime next year.... All joking aside, it is something we have been lazy about, we plead guilty. This weekend, provided we have enough free time [...]

Incoterms : FCA – Free Carrier

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Incoterms : FCA - Free Carrier

FCA Incoterms FCA - Free Carrier - named place. It is important to note that this incoterm can be used for any mode of transportation. While it is my opinion that no single incoterm is better than another, this particular incoterm allows for a great deal of flexibility as it can be used for either [...]

Incoterms : FAS – Free Alongside Ship

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Incoterms : FAS - Free Alongside Ship

FAS FAS - Free Alongside Ship - is a less commonly known or used incoterm. It is used most commonly in sales of bulk cargo such as grains, oil, etc. Personally I have never seen it used, but then again I have never been involved in the logistics of bulk cargo. In FAS - Free [...]