Shipping resourcesDefine the handover
Define the handover
before cargo moves.
A practical starting point for discussing cost, responsibility and risk between seller and buyer.
Why it matters
Three letters shape the shipment.
Incoterms clarify where delivery occurs, when risk transfers and which party arranges specified transport or customs activities. They do not replace a sales contract, determine title to goods or cover every legal and commercial issue.
Always state the chosen rule, the named place or port and the applicable version—for example: “FCA, named place, Incoterms 2020.”
Any mode of transport
Rules used across road, air, rail and multimodal freight.
| Rule | Seller’s key delivery point | Practical note |
|---|---|---|
| EXW | Goods placed at seller’s premises or named place. | Buyer carries most transport and export responsibilities; suitability should be checked for international use. |
| FCA | Goods delivered to the buyer’s carrier at the named place. | Often practical for containerized and air freight; seller handles export clearance. |
| CPT | Risk transfers at handover to the carrier; seller pays carriage to named destination. | Cost and risk transfer at different points. |
| CIP | As CPT, with seller also arranging the prescribed cargo insurance. | Confirm policy terms and insured value. |
| DAP | Goods ready for unloading at the named destination. | Buyer normally handles import clearance and unloading. |
| DPU | Goods unloaded at the named destination. | The only rule requiring seller to unload at destination. |
| DDP | Goods delivered import-cleared at named destination, ready for unloading. | Seller carries broad responsibility; local importer and tax requirements need careful review. |
Sea and inland waterway
Rules for port-to-port delivery points.
| Rule | Seller’s key delivery point | Practical note |
|---|---|---|
| FAS | Goods placed alongside the vessel at the named port of shipment. | Used for appropriate bulk or non-containerized movements. |
| FOB | Goods placed on board the vessel at the named port of shipment. | Common in trade, but FCA may fit containerized shipments better. |
| CFR | Risk transfers on board; seller pays freight to destination port. | Buyer arranges cargo insurance unless otherwise agreed. |
| CIF | As CFR, with seller arranging the prescribed cargo insurance. | Confirm the insurance cover is adequate for the cargo. |
This overview is general information, not legal or customs advice. The sales contract and the current official ICC Incoterms rules govern the transaction.