Incoterms are an essential tool for global trade as they provide a common set of rules and terms for buyers and sellers to follow, making it easier to negotiate and conduct international trade transactions. These terms help to establish which party is responsible for various aspects of the transaction, including the costs, risks, and responsibilities associated with transporting the goods from the seller to the buyer. By understanding the different Incoterms, businesses can better manage their risk and ensure that their transactions are conducted smoothly and efficiently.

Here’s a comprehensive list of all 11 Incoterms®, categorized by the mode of transport they apply to:

Incoterms for any mode of transport:

EXW – Ex Works

FCA – Free Carrier

CPT – Carriage Paid To

CIP – Carriage and Insurance Paid To

DAP – Delivered At Place

DPU – Delivered at Place Unloaded

DDP – Delivered Duty Paid

Incoterms for sea and inland waterway transport:

FAS – Free Alongside Ship

FOB – Free on Board

CFR – Cost and Freight

CIF – Cost, Insurance and Freight

Each Incoterm specifies different obligations and responsibilities for the buyer and seller, such as who is responsible for loading and unloading the goods, arranging transportation and insurance, and paying for various costs associated with the shipment. It’s important to choose the most appropriate Incoterm® for your transaction, based on the specific needs and requirements of both parties involved.