27/09/2025
🚢 Shipping Terms Made Simple!!
When moving goods globally, knowing Incoterms saves time & cost. Here are the most common ones in plain language:
🔹 EXW (Ex Works) – Buyer picks up goods from seller’s place. Seller does nothing beyond making goods ready.
🔹 FOB (Free on Board) – Seller delivers goods to the port & loads them on the ship. Buyer takes over after loading.
🔹 CIF (Cost, Insurance & Freight) – Seller pays for shipping & insurance until the destination port. Buyer handles customs & delivery after that.
🔹 DAP (Delivered at Place) – Seller delivers goods to buyer’s country & location, but buyer clears customs.
🔹 DDP (Delivered Duty Paid) – Seller handles everything including customs & taxes. Buyer just receives the goods.
💡 Takeaway:
Choosing the right term = clarity, lower risks, and smoother trade.