Incoterms Chart : A Picture Show You All Incoterms [ Infographic ]
This is our most updated Incoterms chart in 2020.
From which, you can easily understand the tasks, costs and risks associated with the transportation on various stages.
In fact, we have a detail explained guide to shipping terms,
But I realize this guide is a very in-depth long content article and you may don’t have time to read,
So I decide to make it as simple as I can. Enjoy!
FOB
Free on board
FOB shipping means that the supplier retains ownership and responsibility for the goods until they are loaded ‘on board’ a shipping vessel. Risk passes to buyer, including payment of all transportation and insurance costs, once delivered on board the ship by the seller.
• Service type: port to port
• Costs: China supplier pay the local export charge; buyer paid the shipping fee and import operation fee
EXW
EX-WORK
exw shipping : Buyer arranges the full shipment, from the supplier’s factory or warehouse to the cargo’s ultimate destination.
So what is exw price ? It means seller won’t take responsbilty of anything about the shipping, they just release the goods to buyer’s forwarder.
• Service type: door to door
• Costs: China supplier pay nothing about shipping ; importer paid the shipping fee and local charges in China, and import fee at destination
CIF
Cost, Insurance and Freight
Risk passes to buyer when delivered on board the ship. So for cif shipping, it means seller arranges and pays cost, freight and insurance to destination port.
• Service type: door to port
• Costs: China supplier pay the local export charge and shipping fee, while buyer pay the import operation at destination
CFR
Cost and Freight
Seller covers costs of freight to the named port of destination or place. Risk is transferred as soon as the goods have been loaded onboad the vessel.
The difference between CFR and CIF is insurance is not included.
• Service type: door to port
• Costs: China supplier pay the local export charge and shipping fee, while buyer pay the import operation at destination.
DDP
Delivered Duty Paid
In short, the seller arranges the entire shipment, including import customs and tax & duty, bears all cost, risk and responsibility at named place of destination at buyers disposal.
• Service type: door to door
• Costs: China supplier pay the local export charge and shipping fee, and import operation fee at destination
That’s all for the shipping terms description.
Still confused ?
Don’t worry.
Here is a picture illustruation for to simply your understanding the whole delivery process.
A picture show you all Incoterms.
A picture show you all Incoterms.
Borning with so many terms ?
Well, here is another more simple way.
It maybe not very accurate, but more useful.
