Lightning Loader 3D Load PlannerLogistics Wiki
A quick-reference guide to Incoterms and common shipping & transport terminology.
Incoterms® 2020 – Quick Reference Chart
Incoterms® (International Commercial Terms) define the responsibilities of sellers and buyers for the delivery of goods. Issued by the International Chamber of Commerce (ICC), they specify who pays for freight, insurance, and customs at each stage of shipment. Incoterms® 2020 is the latest ICC-published edition and remains the globally recognised standard as of 2026.
| Obligation / Charge | EXW Ex Works |
FCA Free Carrier |
FAS Free Alongside Ship |
FOB Free On Board |
CFR Cost & Freight |
CIF Cost Insurance Freight |
CPT Carriage Paid To |
CIP Carriage & Insurance Paid |
DAP Delivered At Place |
DPU Delivered & Unloaded |
DDP Delivered Duty Paid |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Warehouse Services | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller |
| Export Packing | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller |
| Loading at Origin | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | |
| Origin Inland Freight | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | |
| Origin Port Charges | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | |
| Export Customs Clearance | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | Seller | |
| Ocean / Air Freight | Buyer | Buyer | Buyer | Buyer | Seller | Seller | Seller | Seller | Seller | Seller | Seller |
| Cargo Insurance | Buyer | Buyer | Buyer | Buyer | Buyer | Seller | Buyer | Seller | Buyer | Buyer | Buyer |
| Destination Port Charges | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Seller | Seller |
| Destination Inland Freight | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Seller | Seller | Seller |
| Import Customs Clearance | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Seller |
| Import Duties & Taxes | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Seller |
| Delivery to Final Dest. | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Buyer | Seller | Seller |
Note: DPU (Delivered at Place Unloaded) replaced DAT in Incoterms® 2020. CIP now requires higher insurance coverage (Institute Cargo Clauses A) compared to previous editions. The ICC revises Incoterms approximately every ten years; the next revision is expected around 2030.
Incoterm Descriptions
EXW – Ex Works
The seller makes goods available at their premises. The buyer bears all costs and risks from that point, including export customs clearance and loading onto the collecting vehicle.
FCA – Free Carrier
The seller delivers the goods to a named carrier or another nominated party at the seller's premises or another named place. Export customs clearance is the seller's responsibility.
FAS – Free Alongside Ship
The seller delivers when goods are placed alongside the vessel (e.g. on a quay) at the named port of shipment. Risk transfers to the buyer from that moment.
FOB – Free On Board
The seller loads the goods on board the nominated vessel at the port of shipment. Risk passes to the buyer when goods are on board. Used for sea/inland waterway transport only.
CFR – Cost and Freight
The seller pays costs and freight to bring goods to the named port of destination. Risk transfers to the buyer once the goods are on board at the port of origin.
CIF – Cost, Insurance and Freight
Same as CFR but the seller also procures minimum marine insurance against the buyer's risk of loss or damage during carriage.
CPT – Carriage Paid To
The seller pays freight to the named destination. Risk transfers to the buyer when the goods are handed to the first carrier. Suitable for any mode of transport.
CIP – Carriage and Insurance Paid To
Same as CPT but the seller must also obtain cargo insurance (Institute Cargo Clauses A – all risks) for the goods in transit. Suitable for any mode of transport.
DAP – Delivered at Place
The seller delivers the goods, ready for unloading, at the named destination. The seller bears all costs and risks except import duties and taxes.
DPU – Delivered at Place Unloaded
The seller delivers and unloads the goods at the named terminal or any other place of destination. This is the only Incoterm that requires the seller to unload at destination. Replaced DAT in Incoterms® 2020.
DDP – Delivered Duty Paid
Maximum seller obligation. The seller delivers goods to the buyer at the named destination, cleared for import and with all applicable duties and taxes paid.
Shipping & Transport Glossary
Common terms used in international freight, logistics and supply chain management.
Bill of Lading (B/L)
A legal document issued by a carrier to a shipper confirming receipt of cargo for shipment. It acts as a receipt, a document of title, and evidence of a contract of carriage.
Air Waybill (AWB)
A non-negotiable transport document covering the carriage of cargo by air. Unlike a B/L, it is not a document of title.
CBM (Cubic Metre)
The standard unit of measurement for cargo volume. One CBM = 1 m × 1 m × 1 m. Used to calculate freight charges when volume weight exceeds actual weight.
Chargeable Weight
The weight used by carriers to calculate air freight charges. It is the greater of the actual gross weight and the volumetric (dimensional) weight.
Volumetric Weight
Calculated by dividing the cargo volume by a dimensional factor (usually 6,000 cm³/kg for air freight). Carriers charge whichever is higher: actual or volumetric weight.
FCL (Full Container Load)
A shipment that fills or leases an entire container, regardless of whether the container is completely full. The shipper has exclusive use of the container.
LCL (Less than Container Load)
A shipment that does not fill an entire container. The cargo is consolidated with other shippers' goods in the same container by a freight forwarder or NVOCC.
TEU (Twenty-foot Equivalent Unit)
A standard unit of measurement for container capacity. One 20-ft container = 1 TEU; one 40-ft container = 2 TEUs.
FEU (Forty-foot Equivalent Unit)
A unit of measurement equivalent to one 40-foot shipping container (= 2 TEUs).
Freight Forwarder
An agent or company that organises shipments on behalf of importers and exporters. They arrange cargo transport, documentation, customs clearance and insurance but do not typically own vessels or aircraft.
NVOCC (Non-Vessel Operating Common Carrier)
A freight forwarder that issues its own bills of lading and acts as a carrier to shippers while using actual carriers (shipping lines) for transport.
Port of Loading (POL)
The port where cargo is loaded onto the vessel or aircraft for the main journey.
Port of Discharge (POD)
The port where cargo is unloaded from the vessel or aircraft at the destination.
Customs Clearance
The process of passing goods through customs so they can enter or leave a country. Involves submitting declarations and paying applicable duties and taxes.
HS Code (Harmonised System Code)
An internationally standardised numerical method of classifying traded products. Used by customs authorities worldwide to identify goods and apply the correct duty rate.
Commercial Invoice
A document issued by the seller to the buyer itemising the goods sold, prices, payment terms, and other transaction details. Required for customs clearance.
Packing List
A document listing the contents, quantities, weights, and dimensions of each package in a shipment. Used by customs and logistics providers to verify cargo.
Certificate of Origin (COO)
A document certifying the country where the goods were manufactured or produced. Used to determine applicable tariffs and trade agreement benefits.
Letter of Credit (LC)
A financial instrument issued by a bank guaranteeing payment to the seller, provided the seller presents compliant shipping documents within a specified timeframe.
Dangerous Goods (DG) / IMDG
Cargo that is hazardous due to its chemical, physical or biological properties. The International Maritime Dangerous Goods (IMDG) Code governs the safe carriage of such goods by sea.
Phytosanitary Certificate
An official document certifying that plants, plant products, or other regulated articles meet import phytosanitary requirements of the destination country.
Fumigation Certificate
A document certifying that wooden packaging (e.g. pallets, crates) or cargo has been treated to eliminate pests, in compliance with ISPM-15 international standards.
CMR (Convention on the Contract for the International Carriage of Goods by Road)
An international convention that governs road freight transport contracts. The CMR waybill is the transport document issued under this convention.
CLP (Container Load Plan)
A document showing how cargo has been stowed inside a container, including item dimensions, weights, and positions. Used by shipping lines and terminals.
Seal Number
A tamper-evident security seal applied to a container door after loading. The seal number is recorded on the Bill of Lading and other shipping documents.
ETA (Estimated Time of Arrival)
The expected date and time a vessel, aircraft, or vehicle will arrive at its destination.
ETD (Estimated Time of Departure)
The expected date and time a vessel, aircraft, or vehicle will depart from its origin or current port.
Demurrage
A charge levied by a shipping line when a container is not returned to the terminal within the agreed free-time period after discharge.
Detention
A charge levied by a shipping line when a container is kept by the importer/exporter beyond the agreed free-time period outside the terminal (e.g. at a warehouse).
Free Time
The number of days allowed for the use of a container without incurring demurrage or detention charges.
Transhipment
The transfer of cargo from one vessel or aircraft to another at an intermediate port or hub during transport to the final destination.
Multimodal / Intermodal Transport
The movement of cargo using two or more modes of transport (e.g. road, rail, sea, air) under a single transport document.
Gross Weight
The total weight of the shipment including the goods, packaging, and the container or pallet.
Net Weight
The weight of the goods only, excluding any packaging or container weight.
Tare Weight
The weight of the empty container or packaging without any cargo.
Lashing / Cargo Securing
The process of using straps, chains, or other devices to fasten cargo inside a container or on a vehicle to prevent movement during transport, in accordance with the IMO CTU Code or EN 12195-1.
Shipper
The party who sends or ships the goods. In export transactions, this is usually the seller or exporter.
Consignee
The party to whom the goods are addressed and delivered. Usually the buyer or importer.
Notify Party
A party (often a freight forwarder or customs broker) that the carrier is instructed to inform when a shipment arrives.
Carrier
The company or entity that transports goods from one place to another (e.g. a shipping line, airline, or trucking company).
MRN (Movement Reference Number)
A unique reference number assigned by customs authorities to an export or import declaration, confirming the declaration has been accepted.
VGM (Verified Gross Mass)
The verified total weight of a packed container, required by SOLAS regulations before a container is loaded onto a ship.