What are incoterms?
Alan Fan
Last Update vor 3 Jahren
Freight incoterms (International Commercial Terms) are standard legal terms used in import/export sales contracts to define responsibilities and liabilities when shipping commercial goods.
There are four categories of incoterms (C, D, E, F) and a total of 11 individual incoterms. While most incoterms apply to all modes of transport, a handful only apply to ocean freight shipping.
Each incoterm describes whether the seller or buyer is responsible for arranging and paying for logistics, transport, import customs and duties, and unloading costs. It also determines which party is liable for cargo damages or losses.
Incoterms are updated every few years, and were recently updated in 2020. Since these carry legal weight, it’s important to know what each incoterm means.
