Who pays, who insures and where risk transfers — the essentials of the most common Incoterms, without the jargon.
Incoterms define the responsibilities of buyer and seller in international trade. Getting them right prevents disputes and unexpected costs.
EXW places maximum responsibility on the buyer, while DDP places it on the seller — everything else sits between these two poles.
The most common terms for containerised trade are FOB, CIF and DAP. Each shifts the point where cost and risk transfer, which directly affects your freight and insurance obligations.
The key is alignment: your Incoterm, your insurance and your customs documentation must all tell the same story. A good forwarder will flag mismatches before they become problems.
