Incoterms for any mode of transportation:

  • EXW (EX works) meaning picked-up at the factory.
  • FCA (Free carrier) meaning delivered to the carrier.
  • CPT (Carriage paid to) meaning the seller pays shipping to the carrier a specific spot.
  • CIP (Carriage and insurance paid to) same as above, but seller also pays for shipping insurance.
  • DPU (Delivered at Place Unloaded) same as above, but goods are unloaded for the buyer at a specific spot.
  • DAP (Delivered at place) same as above, but goods are delivered to buyer’s actual location.
  • DDP (Delivered duty paid) same as above, but seller also pays the import duty. (Be careful; this can be risky.)

Incoterms only to maritime shipping:

  • FAS (Free alongside ship) means the goods are delivered to the dock, ready for loading on the ship.
  • FOB (Free on board) means the customer assumes ownership when the goods are loaded onto the ship.
  • CFR (Cost and freight) same as above, but the seller pays for the ocean freight.
  • CIF (Cost, insurance and freight) same as above, but the seller pays for shipping insurance.