What Are Incoterms?
International Commercial Terms (Incoterms) are a set of 11 internationally recognized rules published by the International Chamber of Commerce (ICC) that define the responsibilities of sellers and buyers in international trade transactions.
The 11 Incoterms 2020 Rules
EXW – Ex Works
The seller makes the goods available at their premises. The buyer bears all costs and risks from that point onward, including export clearance.
FCA – Free Carrier
The seller delivers goods to a named place. Risk passes to the buyer when the carrier takes over the goods.
FOB – Free On Board
Risk passes from seller to buyer when goods are loaded onto the vessel at the port of shipment. Most commonly used for sea freight.
CIF – Cost, Insurance and Freight
The seller pays costs and freight to bring goods to the destination port, but risk passes when goods are loaded on the vessel.
Why Incoterms Matter for Your Business
Choosing the right Incoterm can save you significant money and protect you from unexpected costs. At BrighterDay Freight, our experts help you select the most beneficial terms for every shipment.