Which term should I use?
Use the term in the sales contract. We quote the transport legs that term leaves with you.
Trade terms
Incoterms
Incoterms say which party pays which part of the move. They do not replace the bill of lading.
Incoterms are published by the International Chamber of Commerce. This page is a practical summary for booking freight. It is not legal advice. The term on your commercial invoice should match the term on the quote. If they differ, tell us before we book.
The booking confirmation names the cutoff, the equipment, and the charges. Transit times and sample rates on this site are explanations, not that confirmation. Operations records a milestone only after the cargo or the document has actually moved.
This is a general explanation of Incoterms 2020 language. Your contract and the bill of lading control the shipment.
What to send for a written rate
- City or port of origin, and city or port of destination
- Mode: ocean, air, or truck, if you already know it
- Pieces, weight, and dimensions
- What the goods are, in plain language
- The date the freight is ready
- Hazardous, oversized, or temperature-controlled, if any of those apply
A quote is not a booking. The booking starts when you accept the rate, the cutoff, and the document list in writing.
Terms that stop early
EXW means the seller makes the goods available at their premises. The buyer arranges almost everything after that. FCA means the seller hands the goods to the carrier the buyer named, at an agreed place. FAS and FOB are used with ocean freight: the seller brings the goods alongside or loads them on the vessel at the named port.
Terms that include the main freight
CFR and CIF are ocean terms. The seller pays carriage to the destination port. CIF also requires the seller to provide insurance. CPT and CIP work for any mode. CIP requires a higher level of insurance than CPT.
Terms that reach the buyer
DAP means the seller delivers at the named place, ready for unloading, and the buyer pays duty. DPU means the seller also unloads. DDP means the seller pays duty as well. We accept a DDP shipment only when that duty scope is written into the quote.
A booking checklist
Use the term on the invoice. Ask us to quote the legs that term assigns to you.
| Term | Seller typically arranges | Buyer still watches |
|---|---|---|
| EXW | Goods at the seller door | Export, freight, insurance, import |
| FOB | Export and loading at the origin port | Ocean freight, insurance, import |
| CIF | Ocean freight and insurance to the destination port | Import and delivery inland |
| DAP | Carriage to the named place | Unloading and import duty |
| DDP | Carriage and import duty, if accepted on the quote | Unloading, unless agreed |
Questions
Does CIF include delivery to the warehouse?
No. CIF ends at the destination port. Inland delivery is a separate leg.
Are Incoterms the same as the bill of lading?
No. Incoterms divide cost and risk in the sale. The bill of lading is the carriage contract for the ocean move.
Talk to Pinnacle Cargo Limited operations
A firm rate, a booking, and a tracking number come from operations. This page explains the service. It is not a live tariff.
