- SHIPPING TERMS GUIDE
Understanding Incoterms
Incoterms (International Commercial Terms) define the responsibilities of buyers and sellers in international shipping. They clarify who handles transportation, insurance, customs clearance, and risk at each stage of the shipment process.
What Are Incoterms?
Incoterms are standardized trade terms published by the International Chamber of Commerce (ICC). They help avoid confusion by clearly defining roles, costs, and risks involved in global trade transactions.
Why Incoterms Matter
- Define responsibilities between buyer and seller
- Reduce risk of misunderstandings
- Clarify cost distribution
- Ensure smoother international shipping operations
Need help choosing the right Incoterm? Our team is here to guide you.
Our team is here to guide to.
- Incoterms Overview
Understanding Incoterms
EXW
(Ex Works)
Seller makes goods available at their premises. Buyer handles all transport and risk.
FOB
(Free On Board)
Seller delivers goods onto the vessel. Risk transfers to buyer once loaded.
CIF
(Cost, Insurance & Freight)
Seller covers cost, insurance, and freight to destination port. Risk transfers after loading.
DAP
(Delivered at Place)
Seller delivers goods to the buyer’s location. Buyer handles import duties.
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Choosing the Right Incoterm
Selecting the right Incoterm depends on your shipping needs, cost control, and risk preference. KMR Group helps clients choose the most suitable terms for efficient and secure cargo movement.