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How To Choose Suitable Shipping Incoterms® For Our Business?

Shipping Incoterms is one of the universal guidelines for international importing and exporting. Compared to Incoterms 2010, the newest version Intercoms 2020 added important interpretation to keeping up with the rapidly developing modern logistics from the rising e-commerce mainly. In this page, we will explain and illustrate the glossary of these 11 shipping terms we may have used one or two terms before. The most important thing is that we are providing much clearer guidance to quickly fix a suitable shipping incoterms for clients’ business and shipping.

The full name of Incoterms is International Commercial Terms. The 11 terms in it are globally recognized trade rules. They are first published in Paris in 1936 by the International Chamber of Commerce (ICC). In these shipping intercoms, we can see:

– Provide a uniform interpretation of the full clauses in common international contracts to be carried in export and import transportation.

– Illustrate the timing for the whole transportation process. Divide costs and risks between buyers and sellers.

– Provide clear instructions in the international business process for different parties involved: Carriers, forwarders, customs brokers, banks, insurance institutions and others involved in a certain shipment.

However, the above 11 Incoterms rules are not mandatory but guidelines agreed upon by both parties to a contract. They are trading terms but law terms. Before the shipment process starts, the sellers and buyers need to agree on dividing obligations, costs and risks.

Shipping Incoterms developed along with modern logistics

The Definition of Each Incoterm

In each below content for explaining separate shipping terms, we are going to divide the obligations, costs and risks for sellers and buyers. To make it clearer for our readers, texts, illustrative pictures and shipping instances will be added to the content.

EXW: Lavori Ex

Con il termine EXW EX Works, il venditore si limita a preparare la merce per il ritiro. L'acquirente si assume tutti i rischi e le responsabilità a partire dalla fabbrica.

FCA: Vettore libero

FCA Free Carrier is a balanced term, the seller delivers the goods to a carrier chosen by the buyer. The risk transfers at this point

FAS: Libero a bordo della nave

Under the term FAS Free Alongside Ship, the seller delivers when the goods are placed alongside the vessel at the named port of shipment

FOB: Franco a bordo

Under the term of FOB Free on Board, the seller’s obligation ends when the goods pass the ship’s rail at the agreed port of shipment

CFR - Costo e trasporto

Under CFR cost and freight, the seller arranges and pays for transport, but the risk transfers to the buyer as soon as the goods cross the ship’s rail at the port of origin

CIF: Costo, assicurazione e trasporto

Under CIF cost, insurance, and freight, the seller not only arranges and pays for transport (like CFR) but also provides insurance against the buyer’s risk of loss or damage to the goods during transit

CPT: Trasporto pagato a

Under the term CPT Carriage Paid To, the seller pays for carriage to the named place of destination, but the risk transfers to the buyer once the goods have been handed over to the first carrier

CIP: Trasporto e assicurazione pagati a

CIP Carriage and Insurance Paid To is similar to CPT, but with the added requirement that the seller purchases insurance for the goods

DPU: Consegnato nel luogo di scarico

The newest DPU Delivered at Place Unloaded term is the epitome of door-to-door service. The seller bears all risks and costs

DAP: Consegnato sul posto

Introduced in 2010, the term DAP Delivered at Place reflects the rise of e-commerce and modern trade. The seller delivers the goods, ready for unloading, at the named place

DDP: Consegnato sdoganato

Under DDP Delivered Duty Paid, the seller delivers the goods, cleared for import, and bears all costs and risks to the buyer’s doorstep
Shipping incoterms 2020 Quicker International Logistics
Divide incoterms into 3 groups using transport modes
Divide incoterms into 4 groups using delivery places
Informazioni su Quicker

Quicker International Logisitics dispone di qualifiche complete. Partendo dalla spedizione merci e dal brokeraggio doganale nel 2007, Quicker ha sviluppato un'eccellente capacità di integrazione dei servizi negli ultimi 18 anni. Fornendo servizi approfonditi per l'intero processo di spedizione e consegna delle merci importate dalla Cina, li abbiamo aiutati con successo a ottimizzare l'efficienza e i costi di consegna.

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