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Incoterms In Plain English: A Freight Shipping Guide

Diving into Incoterms

Freight incoterms are the standard contract term used in sales contracts with importing/exporting to define responsibility and liability for shipment of the goods. In plain English – how far along the process will the supplier ensure that the goods are moved, and at what point does the buyer take over the shipment process.

FOB (Free On Board)EXW (Ex Works) and FCA (Free Carrier) are the most familiar incoterms but there’s much about these and the other options to learn. Because they are legal terms, written from a legal perspective, they can be confusing or easily misunderstood. And making the wrong choice might turn your shipment into an expensive nightmare.

This guide is designed for businesses with less experience dealing with international freight, and provides comprehensive information, clearly explaining each incoterm. But first, click on the following link to be sure that you understand a few key terms before you check out an individual incoterm.

Additional Incoterms Tips


Individual Incoterms