Most Used Shipping Terms

This the most used terms in shipping and in international Business, for more terms explication please downlaod the PDF file.

FOB – Free on Board

Under FOB terms the seller bears all costs and risks up to the point the goods are loaded on board the vessel.

CFR – Cost and Freight

The seller pays for the carriage of the goods up to the named port of destination.

DAT – Delivered At Terminal

This Incoterm requires that the seller delivers the goods, unloaded, at the named terminal.

EXW – Ex Works

The seller makes the goods available at their premises, or at another named place.

Beneficiary

The seller in whose favour an L/C is issued, ie the person who will "benefit" from the L/C.

Bill of Exchange

An unconditional order in writing, issued by the seller instructing the buyer to pay the seller's bank a specified amount。

FCA – Free Carrier

The seller delivers the goods, cleared for export, at a named place (possibly including the seller's own premises).

CPT – Carriage Paid To

CPT replaces the C&F (cost and freight) and CFR terms for all shipping modes outside of non-containerized seafreight.

CIP – Carriage and Insurance Paid to

This term is broadly similar to the above CPT term, with the exception that the seller is required to obtain insurance for the goods while in transit.

CIF – Cost, Insurance & Freight

This term is broadly similar to the above CFR term, with the exception that the seller is required to obtain insurance for the goods while in transit to the named port of destination.



AP – Delivered At Place

the seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination.

DDP – Delivered Duty Paid

Seller is responsible for delivering the goods to the named place in the country of the buyer, and pays all costs in bringing the goods to the destination including import duties and taxes.

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