Understanding Incoterms for Shipments

  Levering / export
- Levering / export Africa - © Transautomobile 2025

Incoterms (International Commercial Terms) are standardized terms used in international sales contracts to define the responsibilities of sellers and buyers regarding the delivery of goods. Here is a brief explanation of the most commonly used incoterms for shipments by sea:

1. EXW (Ex Works):

  • The seller makes the goods available at their factory or warehouse.
  • The buyer bears all costs and risks from that point.

 

2. FCA (Free Carrier):

  • The seller delivers the goods to a carrier designated by the buyer at an agreed point.
  • The risk is transferred to the buyer upon delivery to the carrier.

 

3. FAS (Free Alongside Ship):

  • The seller delivers the goods alongside the ship (at the agreed port of loading).
  • The buyer assumes all costs and risks from that point.

 

4. FOB (Free On Board):

  • The seller delivers the goods on board the ship designated by the buyer (at the agreed port of loading).
  • The risk is transferred to the buyer once the goods are on board.

 

5. CFR (Cost and Freight):

  • The seller pays the costs and freight to bring the goods to the port of destination.
  • The risk is transferred to the buyer once the goods are on board the ship.

 

6. CIF (Cost, Insurance, and Freight):

  • Like CFR, but the seller must also obtain insurance covering the buyer's risks during transport.

 

7. CPT (Carriage Paid To):

  • The seller pays for the transport of the goods to the agreed destination.
  • The risk is transferred to the buyer once the goods are handed over to the main carrier.

 

8. CIP (Carriage and Insurance Paid To):

  • Like CPT, but the seller must also obtain insurance covering the buyer's risks during transport.

 

9. DAP (Delivered at Place):

  • The seller delivers when the goods are made available to the buyer on the arriving means of transport, ready for unloading at the agreed place of destination.
  • The seller bears all risks up to that point.

 

10. DPU (Delivered at Place Unloaded):

  • The seller delivers the goods unloaded at the agreed place of destination.
  • The seller bears all risks until the goods are unloaded at the destination.

 

11. DDP (Delivered Duty Paid):

  • The seller assumes all costs and risks to deliver the goods to the agreed destination, including import duties.
  • The risk is transferred to the buyer once the goods are made available, cleared for import.

 

Each incoterm clearly defines the responsibilities for aspects such as export, import, transport, and insurance, facilitating international trade transactions and reducing the risk of misunderstandings between contracting parties.

 

In conclusion, Transautomobile, as an expert in vehicle export, can provide valuable assistance to the buyer in navigating the complexities of incoterms and the necessary procedures for shipment. Whether it's choosing the right incoterm to suit your specific needs or handling customs and logistical formalities, Transautomobile offers comprehensive expertise and support to ensure a smooth and efficient transaction. By using their services, buyers can be assured that their vehicles will be shipped safely and in compliance with international standards.


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