What are Incoterms and how do I choose the right ones for international freight shipping?
Before considering ocean and air shipping internationally, it's crucial to understand Incoterms, the internationally recognized set of rules that define the responsibilities of sellers and buyers at each transportation touchpoint along the way. Created by the International Chamber of Commerce (ICC), Incoterms are widely-used terms of sale covering all aspects of commercial shipping. They stipulate the parties responsible for paying for and managing specific shipments, related actions and undertakings for each leg of the shipment including who pays for insurance, customs clearance, documentation, ancillary transportation cost and other logistical activities. Familiarizing yourself with Incoterms will help to make your shipments go smoothly and avoid extra headaches and expense. The seven Incoterms 2020 rules for any mode of transport are: EXW - Ex Works (named place of delivery): The seller makes the goods available at their premises, or at another named place. FCA - Free Carrier