Incoterms

This incoterm gives the most responsibility to the buyer. It basically means that they have bought their goods and need to arrange a transport to pick up their goods at fabric from their supplier. Both the risk and the costs alongside the whole traject are for the account of the buyer. Even though this is a very often used incoterm, it is not the incoterm which we would recommend. The fact that the buyer is responsible for the customs of the goods in a country which is not his, exposes him to all kind of extra risks which can easily be avoided by buying the goods on FCA "Loading place" basis. 

With the Free Carrier incoterm there are two extra responsibilities for the seller. The seller will have the obligation to do the customs and to do the loading of the goods. As soon as the cargo is loaded on the truck/container the responsibility for the seller ends. The rest of the journey is both at cost as at risk of the buyer. 
The fact that the customs is done by the seller makes a big crucial difference compared to the EXW incoterm earlier mentioned. This incoterm is therefore a lot more favorable for both parties. 

This incoterm is not much used anymore as it basically means that the seller has the responsibility to deliver the cargo alongside the ship. While this is workable for break-bulk cargo, it is not for containerized cargo. Containers are delivered at a terminal, and not alongside a ship. For those containers delivered at terminal it is better to use the incoterm FCA with the extra fact that it is FCA "Port terminal". 

Together with the EXW incoterm probably the most used incoterm between sellers and buyers, even though that FCA "Port terminal" is the better solution here as well. For FOB shipments the responsibility and the costs transfer from seller to buyer as soon as the container is loaded on board of the vessel. The reason why this FOB incoterm is not preferred is because the seller already provides the goods to the buyers transportation company on the terminal. 

This is the first incoterm where the seller is also responsible to pay for the transport up to the destination port. 
While the seller is responsible for the costs, we cannot stress enough that the risk during the maritime transport is already for the buyer of the goods. If something happens to his ordered goods, it will be the responsibility from the buyer as soon as the goods have been loaded on board of the container vessel. 

This is a very similar incoterm to the CFR one we just highlighted above. We stressed the fact that the risk for the transport of the goods on the vessel was for the buyer, but with the CIF incoterm it is obliged that the seller takes an insurance for the buyer at his expense. Take into account though that there is no specification on how good the insurance needs to be and that the contractual 'minimum' insurances do not cover the total cargo loss of the goods. Check out our possibilities to offer you a 110% covering insurance for your goods. Taking away your worries, that is our main goal!

With this incoterm the seller is in charge to deliver the goods at his expense up to destination (air)port. However important to know for the buyer is that the risk of the transport already transfers a lot earlier. The risk can already be transferred when goods are picked up at sellers warehouse or at another specified delivery place.

This is a very similar incoterm to the CFR one we just highlighted above. We stressed the fact that the risk for the transport of the goods already transferred very soon to the buyer, but now with the CIP incoterm the seller is obliged to take an insurance for the buyer at his expense. Even though this is already a step forward to no insurance at all, you need to take into account that there is no obligation on how good this insurance needs to be. From our side we recommend to insure your goods extra via the 110% covering insurances we offer for your goods. 

When using the incoterm DAP in international trade it means the seller will need to pay for the transport until the cargo arrives at your door. The unloading when cargo arrives at destination is for the buyer. The risk remains at sellers side until cargo arrives at destination. If during the stripping of the container the cargo falls of the truck this is the responsibility of the buyer. Custom clearance is for the buyer as well. 

Obvious difference with the DAP incoterm is that the loading is now also under responsibility / cost of the seller. For the rest everything is exactly the same as with the DAP incoterm. 

This is the incoterm with the most responsibilities and costs for the seller. Basically the seller takes away all the worries, costs, risks and formalities away for the buyer. He is responsible to get the cargo from his warehouse up to the final recipients door. He will even be in charge of the customs formalities in the country of the recipient. Similarly like we are not a big fan of the EXW incoterm where the buyer needs to do the custom clearance in the country of his seller, we are not a big fan of the DDP incoterm where the seller is responsible to do the custom clearance in the country of his client. We would much more recommend the DAP incoterm as we believe custom formalities are a local matter which are best done by the residents of that specific country.