RULES FOR ANY MODE OR MODES OF TRANSPORT

EXW

Ex Works (named place of delivery)

FCA

Free Carrier (named place of delivery)

CPT

Carriage Paid To (named place of destination)

CIP

Carriage And Insurance Paid To (named place of destination)

DAT

Delivered At Terminal (named terminal at port or place of destination)

DAP

Delivered At Place (named place of destination)

DDP

Delivered Duty Paid (named place of destination)

RULES FOR SEA AND INLAND WATERWAY TRANSPORT

FAS

Free Alongside Ship (named port of shipment)

FOB

Free On Board (named port of shipment)

CFR

Cost And Freight (named port of destination)

CIF

Cost, Insurance and Freight (named port of destination)

Incoterms® define the responsibilities of buyers and sellers for the domestic and international delivery of goods and determine how costs and risks are allocated. The words, "importer" and "exporter" have been used instead of "buyer" and "seller" that relate more closely with international (cross-border) trade.

Term Description Mode

EXW

Ex Works (named place of delivery)

All Modes

Exporter places goods at their premises at importer’s disposal, i.e. works, factory or warehouse. For example: EXW Street Address, City, Country or EXW City, Country if the named address has been specified in the contract of sale. Exporter has limited obligations to provide export information and is not obliged to load the goods on any conveyance. Moreover, importer has to organize export clearance from the country of shipment. It should not be assumed that export formalities such as licenses, authorizations and security related information are the responsibility of the importer. The exporter must provide, at importer’s request, risk and expense, assistance in these export formalities.

FCA

Free Carrier (named place of delivery)

All Modes

Exporter delivers the goods to the carrier or another person nominated by importer at the exporter’s premises or another named place. For example: FCA Street Address of Forwarder/Consolidator, City, Country. Exporter is required to clear the goods for export. Delivery is said to have taken place when the exporter places the goods at the named place. It is then up to the importer to arrange for further means of transport. Transfer of risk for loss or damage from exporter to importer takes place when said delivery has taken place in said manner.

CPT

Carriage Paid To (named place of destination)

All Modes

Exporter delivers the goods to the carrier or another person nominated by them at an agreed place and pays the costs to ship the goods to the named place of destination. For example: CPT Destination City. Exporter is required to clear the goods for export. The agreed place of delivery is where the risk passes to the importer. The costs of transportation to the destination place (named city) are borne by the exporter but the risk for damage or loss to the goods passes when delivery is made at the agreed place. The agreed place may be the carrier’s or the nominated person’s premises, the airport or port terminal warehouse or any other place, as agreed to in the contract of sale. Several carriers may be used to transport the goods to its destination.

Example:

  • Goods transported from factory address by a trucking company (first carrier)

  • Then from the trucking company’s address to a rail yard by a another trucking company (second carrier)

  • Then from the rail yard to the port rail yard by rail (third carrier)

  • Then from the port rail yard to a dock by another trucking company (fourth carrier)

  • Finally by vessel to the final destination (fifth carrier)

CIP

Carriage, Insurance Paid To (named place of destination)

All Modes

Exporter delivers the goods to the carrier or another person nominated by them at an agreed place and also contracts for insurance cover against risk of loss or damage to the goods during the carriage in addition to paying the costs to ship the goods to the destination. For example: CIP Destination City. CIP can be considered similar to CPT with insurance cover added. Exporter is required to clear the goods for export.

DAT

Delivered At Terminal (named terminal at port or place of destination)

All Modes

Exporter delivers the goods after unloading from the arriving vessel or other means of transport and places them at the disposal of the importer at a named terminal at a named port. For example: Port name, Terminal number. Terminal could also mean a port warehouse, container yard, rail station or air cargo terminal. Exporter bears all risks and costs involved up to unloading the goods at the named terminal. For LCL (Loose Container Load) cargo, it would be the obligation of the exporter to have the LCL cargo unloaded from the container and placed in their NVOCC (Non-Vessel Operation Common Carrier) or freight forwarders warehouse at the disposal of the importer. The exporter bears all the costs up to this point. It is then the obligation of the importer to arrange for pick-up.

DAP

Delivered At Place (named place of destination)

All Modes

Delivery takes place at a named destination and when the goods have been placed at the disposal of the importer but have not yet been unloaded from the arriving vehicle. For example DAP City name. In this case, the street address of the importer could also be included or indicated separately in the contract of sale as the named place of destination or any agreed to point. Risks and costs up to the named address and prior to the time the goods are unloaded are the exporter’s responsibility.

DDP

Delivered Duty Paid (named place of destination)

All Modes

Exporter places the goods at the disposal of the importer with all import duties and taxes paid. The exporter is also responsible for all costs associated with importing the goods and assumes risk for damage to or loss of the goods up to the named place of destination. For example: DDP City name. Street address of the importer could also be included or indicated separately in the contract of sale as the named place of destination.

FAS

Free Alongside Ship (named port of shipment)

Sea

Exporter places the goods alongside the vessel nominated by the importer at a named port of shipment. For example: FAS Port name. For exporters who ship goods in containers, placing a container alongside a vessel is most likely not possible because containers are usually first sent to a terminal or loaded at a NVOCC’s warehouse before being loaded onto the vessel. It is therefore advisable to use FCA in these cases. FAS is usually used for bulk cargo. Risk of loss of and damage to the goods up to the port is the exporter’s responsibility and the importer then assumes risk and bears all costs thereafter.

FOB

Free On Board (named port of shipment)

Sea

Exporter is required to deliver the goods on board a vessel. For example: FOB Port name. This is sometimes not possible for exporters who ship goods in containers because containers are usually first sent to a terminal or loaded at a NVOCC’s warehouse before being loaded onto the vessel. Risk of loss of and damage to the goods is the exporter’s responsibility up to when the goods are on board the vessel. FOB is good to use for bulk cargo. The point of delivery here is the named port. Usually the exporter hands over a loaded, ready-to-ship container to the carrier at a warehouse or terminal (named place) before being loaded onto the vessel. This then cannot be an appropriate FOB transaction which states Free On Board. In the case of container shipments, it is advisable to use FCA.

CFR

Cost And Freight (named port of destination)

Sea

Exporter delivers the goods on board a vessel and pays the costs and freight necessary to bring the goods to the named port of destination. For example: CFR Port name. The point of delivery here is when the goods are on board the vessel at the shipment port. Therefore, the exporter’s obligation for loss or damage to the goods is to this point of delivery. It is not up to the port of destination. Here, the risk passes at the port of shipment even though the freight costs have been paid up to the port of destination. Point to bear in mind is that with CFR terms the destination port is known but not necessarily the origin port. It is entirely likely that the exporter may opt to ship from different ports each time. In all cases, risk passes to the importer at the port of shipment. Similarly as with FOB, CFR cannot be an appropriate term to use for container shipments because containers are handed over to the carrier at a warehouse or terminal (named place) before being loaded onto the vessel. In this case, it is advisable to use CPT.

CIF

Cost, Insurance and Freight (named port of destination)

Sea

Exporter delivers the goods on board a vessel and pays the costs and freight necessary to bring the goods to the named port of destination as well as covers insurance for risk of loss of or damage to the goods during carriage. For example: CIF Port name. The point of delivery here is when the goods are on board the vessel at the shipment port. The exporter’s obligation for loss or damage to the goods is to this point and not up to the port of destination. The two critical points of when the risk passes from the exporter and the incurred costs are the same as in CFR. Similarly, too, because of container shipments which are handed over to the carrier before being loaded onto the vessel, CIF is not an appropriate term to use. In this case, it is advisable to use CIP.

TERMSEXW EX WorksFCA Free CarrierFAS Free AlongsideFOB Free OnboardCRF Cost & FreightCIF Cost, Insurance & FreightCPT Carriage Paid toCIP Carriage Insurance Paid toDAT Delivery at TerminalDAP Delivered at PlaceDDP Delivery Duty Paid
Transport Mode ALL ALL SEA SEA SEA SEA ALL ALL ALL ALL ALL
Packing Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Loading to Truck Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Transport to Port Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Origin Terminal Charges Buyer Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller
Insurance Buyer Buyer Buyer Buyer Buyer Seller Buyer Seller Seller Seller Seller
Loading on Vessel Buyer Buyer Buyer Seller Seller Seller Seller Seller Seller Seller Seller
Transport to named place Buyer Buyer Buyer Buyer Seller Seller Seller Seller Seller Seller Seller
Import Charges Buyer Buyer Buyer Buyer Buyer Buyer Seller Seller Seller Seller Seller
Duties & Taxes Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Seller
Transport to Destination Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer BUyer Seller Seller
Standard ContainersInside LenghtInside WidthInside HeightDoor WidthDoor HeightCubic CapacityTare WeightMaximum Payload
20’GP 5.900m 2.350m 2.393m 2.342m 2.280m 33.2cbm 2.230kg 21.770kg
40’GP 12.036m 2.350m 2.392m 2.340m 2.280m 67.7cbm 3.700kg 26.780kg
40’HC 12.036m 2.350m 2.697m 2.340m 2.585m 67.7cbm 3.700kg 26.510kg

 

Open Top ContainerInside LenghtInside WidthInside HeightDoor WidthDoor HeightCubic CapacityTare WeightMaximum Payload
20’OT 5.894m 2.311m 2.354m 2.286m 2.184m 32.2cbm 2.400kg 21.600kg
40’OT 12.038m 2.350m 2.345m 2.341m 2.274m 65.5cbm 3.850kg 26.630kg

 

Flat Rack ContainersInside LenghtInside WidthInside HeightDoor WidthDoor HeightCubic CapacityTare WeightMaximum Payload
20’FR 5.620m 2.200m 2.233m       2.530kg 21.470kg
40’FR 12.038m 2.438m 2.103m       5.800kg 39.000kg

 

Reefer ContainersInside LenghtInside WidthInside HeightDoor WidthDoor HeightCubic CapacityTare WeightMaximum Payload
20’RF 5.894m 2.275m 2.260m 2.258m 2.216m 28.3cbm 3.200kg 20.800kg
40’RF 11.496m 2.270m 2.197m 2.282m 2.155m 57.8cbm 4.900kg 25.580kg
40’RF 11.557m 2.294m 2.500m 2.294m 2.440m 66.6cbm 4.500kg 25.980kg

 

*Note that Specification may vary depending on Shipping Line

 

Standard ContainersInside LenghtInside WidthInside HeightDoor WidthDoor HeightCubic CapacityTare WeightMaximum Payload
20’GP 19´ 4” 7´8” 7´10” 7’8” 7´6” 1.172cft 4.916lbs 47.900lbs
40’GP 39´ 5” 7´8” 7´10” 7´8” 7´6” 2.390cft 8.160lbs 59.040lbs
40’HC 39´ 5” 7´8” 8´10” 7´8” 8´5” 2.694cft 8.750lbs 58.540lbs

 

Open Top ContainerInside LenghtInside WidthInside HeightDoor WidthDoor HeightCubic CapacityTare WeightMaximum Payload
20’OT 19´ 4” 7´7” 7´8” 7´6” 7´2” 1.136cft 5.280lbs 47.620lbs
40’OT 39´ 5” 7´8” 7´8” 7´8” 7´5” 2.350cft 8.490lbs 58.710lbs

 

Flat Rack ContainersInside LenghtInside WidthInside HeightDoor WidthDoor HeightCubic CapacityTare WeightMaximum Payload
20’FR 18´ 5” 7´3” 7´4”       5.578lbs 47.333lbs
40’FR 39´ 7” 6´10” 6´5”       12.081lbs 85.800lbs

 

Reefer ContainersInside LenghtInside WidthInside HeightDoor WidthDoor HeightCubic CapacityTare WeightMaximum Payload
20’RF 17´ 8” 7´5” 7´5” 7´5” 7´3” 1.000cft 10.780lbs 45.760lbs
40’RF 37´ 8” 7´5” 7´2” 7´5” 7´0” 2.040cft 10.780lbs 56.276lbs
40’RF 37´ 11” 7´6” 8´2” 7´6” 8´0” 2.344cft 9.900lbs 57.561lbs

 

*Note that Specification may vary depending on Shipping Line