Industry Insights Jul 7, 2026 By David Chen No Comments
Incoterms define the point at which risk and cost transfer from seller to buyer during international trade. Getting them wrong can mean unexpected fees, customs delays, or disputes over damaged cargo.
The most common terms
- FOB (Free on Board) — seller covers costs until the goods are loaded on the vessel.
- CIF (Cost, Insurance and Freight) — seller arranges and pays for insurance and freight to the destination port.
- DDP (Delivered Duty Paid) — seller handles the shipment all the way to the buyer's door, duties included.
Choosing the right term up front saves time, money, and confusion later in the shipment lifecycle.
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