A buyer’s guide to Incoterms

September 5, 2017 freighttenderinfo

Here’s a handy guide to Incoterms, a set of international rules for the interpretation of the most commonly used trade terms. Applying Incoterms to a sale and purchase contracts makes global trade easier and helps partners in different countries understand one another.

When global companies enter into contracts to buy and sell goods they are free to negotiate specific terms. These terms include the price, quantity, and characteristics of the goods. Every international contract also contains what is referred to as an Incoterm, or international commercial term.

There are 13 main terms and several secondary terms that denote the points at which shipper, carrier, and consignee risk and responsibility start and end.

Looking for specific incoterm? Use this link to find them!

 


Previous Article
What does Industry 4.0 mean for the future of logistics?
What does Industry 4.0 mean for the future of logistics?

Industry 4.0 “in its scale, scope and complexity will be a transformation unlike anything humankind has exp...

Next Article
Shipping Demurrage and Detention Charges Explained
Shipping Demurrage and Detention Charges Explained

First things first – What is demurrage? The basic definition of demurrage is simple – a fee leveraged on ca...