EDUCATIONAL
RESOURCES
THE SHIPMENT JOURNEY
The shipment journey spans every step from origin to final delivery—strategically planned, expertly managed, and continuously guided to ensure speed, compliance, and confidence at every handoff.
INCOTERMS 101 NAVIGATING INTERNATIONAL SOURCING
Incoterms are the internationally recognized trade terms that define responsibility, risk, and cost between buyers and sellers throughout the shipment lifecycle. Understanding Incoterms is essential for effective global logistics—helping you confidently plan contracts, control costs, and ensure smooth movement of goods across borders.
01
WHAT ARE INCOTERMS?
11 terms set by the International Chamber of Commerce for use in contracts, purchase orders and quotations for B2B sales and purchases of tangible goods.
02
WHY DO THEY EXIST?
They divide costs, risks & responsibilities between sellers and buyers and guide parties in international trade contracts to fulfill tasks such as shipping or insurance.
03
USING INCOTERMS IN CONTRACTS
When purchasing for your business from overseas or if selling internationally, strengthen your trade by the following.
Determine the Incoterm that best suits your business. Once chosen, request the seller to quote based on these terms.
Tip: seek advice from a professional such as a freight forwarder, local foreign trade office, etc.
Be as specific as possible with the term by following the standard format: INCOTERM, Location seller must deliver to, INOCTERMS 2020
Example: CIF, Shanghai, Incoterms 2020
Share Incoterm details to avoid misquotes and unexpected freight charges.
Confirm Incoterms early to avoid charges outside your responsibility.
Remember as your business grows and changes, so can your terms of trade.
