{"id":1903,"date":"2021-03-24T16:10:25","date_gmt":"2021-03-24T23:10:25","guid":{"rendered":"https:\/\/www.easyhaul.com\/blog\/?p=1903"},"modified":"2026-01-15T14:32:23","modified_gmt":"2026-01-15T22:32:23","slug":"what-are-shipping-incoterms","status":"publish","type":"post","link":"https:\/\/www.easyhaul.com\/blog\/2021\/03\/24\/what-are-shipping-incoterms\/","title":{"rendered":"What Are Shipping Incoterms\u00ae"},"content":{"rendered":"<p><a href=\"https:\/\/www.easyhaul.com\/blog\/2020\/12\/23\/global-maritime-trade-recovery\/\"><span style=\"font-weight: 400;\">International trade<\/span><\/a><span style=\"font-weight: 400;\"> has been flourishing since the 1960s, which fostered the necessity of worldwide commerce regulations. Now, a separate UN branch, called the <\/span><b>United Nations Commission on International Trade Law<\/b><span style=\"font-weight: 400;\"> (<\/span><b>UNCITRAL<\/b><span style=\"font-weight: 400;\">) facilitates intercontinental trade by designing laws and conventions to make commerce easier. The UNCITRAL<\/span><span style=\"font-weight: 400;\"> has ratified 11 Incoterms<\/span><span style=\"font-weight: 400;\">\u00ae<\/span><span style=\"font-weight: 400;\"> (<\/span><b>international commercial terms<\/b><span style=\"font-weight: 400;\">) as the universal standard for transportation. Understanding Incoterms 2020 is a must to avoid unnecessary stress during <\/span><a href=\"https:\/\/www.easyhaul.com\/container-shipping\"><span style=\"font-weight: 400;\">vehicle shipping<\/span><\/a><span style=\"font-weight: 400;\">, as they determine what you are liable for. In this blog, we\u2019re outlining these 11 Incoterms<\/span><span style=\"font-weight: 400;\">\u00ae and what they mean<\/span><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2 style=\"text-align: center;\"><b>Commercial Incoterms<\/b><b>\u00ae<\/b><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-1904\" src=\"https:\/\/www.easyhaul.com\/blog\/wp-content\/uploads\/2021\/03\/Blog-EH-Incoterms-1-1024x576.png\" alt=\"different types of incoterms\" width=\"1024\" height=\"576\" srcset=\"https:\/\/www.easyhaul.com\/blog\/wp-content\/uploads\/2021\/03\/Blog-EH-Incoterms-1-1024x576.png 1024w, https:\/\/www.easyhaul.com\/blog\/wp-content\/uploads\/2021\/03\/Blog-EH-Incoterms-1-1000x563.png 1000w, https:\/\/www.easyhaul.com\/blog\/wp-content\/uploads\/2021\/03\/Blog-EH-Incoterms-1-768x432.png 768w, https:\/\/www.easyhaul.com\/blog\/wp-content\/uploads\/2021\/03\/Blog-EH-Incoterms-1.png 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">These 11 Incoterms\u00ae are a set of rules developed and copyrighted by the <\/span><b>International Chamber of Commerce (ICC)<\/b><span style=\"font-weight: 400;\">, available in 31 languages. The standard Incoterms\u00ae<\/span><span style=\"font-weight: 400;\"> are 3-letter acronyms that determine four crucial aspects in logistics. They include information on:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">a place of a contractual agreement between the parties involved (a <\/span><a href=\"https:\/\/www.easyhaul.com\/blog\/2020\/11\/18\/rail-auto-shipping\/\"><span style=\"font-weight: 400;\">terminal<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"https:\/\/www.easyhaul.com\/blog\/2020\/04\/22\/major-shipping-ports-in-the-usa\/\"><span style=\"font-weight: 400;\">a port<\/span><\/a><span style=\"font-weight: 400;\">, or any other suitable facility),<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">who is responsible for the <\/span><a href=\"https:\/\/www.easyhaul.com\/blog\/2017\/02\/09\/documents-youll-need-to-export-your-vehicle\/\"><span style=\"font-weight: 400;\">documentation<\/span><\/a><span style=\"font-weight: 400;\">,<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">when risks are transferred to the other party,<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">and what a single party pays for.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The current Incoterms<\/span><span style=\"font-weight: 400;\">\u00ae are subject to updates once in approximately ten years. In 2019-2020, the ICC issued the newest revision of Incoterms\u00ae, which are in effect at the time of writing. However, parties are free to choose earlier iterations of Incoterms\u00ae, provided that they indicate in a contract which issue they agreed to use.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Most standard Incoterms\u00ae don\u2019t deal with payment methods and <\/span><a href=\"https:\/\/www.easyhaul.com\/blog\/2020\/07\/29\/import-a-car-to-puerto-rico\/\"><span style=\"font-weight: 400;\">import duties<\/span><\/a><span style=\"font-weight: 400;\"> levied in the destination country\/port, as these have to be negotiated by the parties beforehand.<\/span><\/p>\n<h2 style=\"text-align: center;\"><b>Different types of Incoterms<\/b><b>\u00ae<\/b><b> and their meanings<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Seven Incoterms<\/span><span style=\"font-weight: 400;\">\u00ae are used in all kinds of transport. They are as follows:<\/span><b><\/b><\/p>\n<ul>\n<li aria-level=\"1\"><b>CIP (carriage and insurance paid to),<\/b><\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>CPT (carriage paid to),<\/b><\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>DAP (delivered at place),<\/b><\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>DAT\/DPU (delivered at terminal\/delivered at place unloaded),<\/b><\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>DDP (delivery duty paid),<\/b><\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>EXW (ex works),<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>and FCA (free carrier).<\/b><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Each of these Incoterms\u00ae defines the shipping responsibilities for both parties. For instance, <\/span><b>EXW<\/b><span style=\"font-weight: 400;\"> is where a client is responsible for everything from pickup to import. The seller (or shipper) can help with loading at their facility for extra money.<\/span><\/p>\n<p><b>CIP<\/b><span style=\"font-weight: 400;\"> presupposes that the shipper is responsible for freight charges and <\/span><a href=\"https:\/\/www.easyhaul.com\/blog\/2018\/01\/16\/marine-insurance-understanding-the-different-types-policies\/\"><span style=\"font-weight: 400;\">insurance<\/span><\/a><span style=\"font-weight: 400;\"> coverage, while risks are passed to the client when a <\/span><a href=\"https:\/\/www.easyhaul.com\/blog\/2020\/10\/21\/how-you-benefit-using-an-nvocc-licensed-transporter\/\"><span style=\"font-weight: 400;\">freight forwarder<\/span><\/a><span style=\"font-weight: 400;\"> receives the goods to transport.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-1905\" src=\"https:\/\/www.easyhaul.com\/blog\/wp-content\/uploads\/2021\/03\/Blog-EH-Incoterms-2-1024x576.png\" alt=\"different types of incoterms\" width=\"1024\" height=\"576\" srcset=\"https:\/\/www.easyhaul.com\/blog\/wp-content\/uploads\/2021\/03\/Blog-EH-Incoterms-2-1024x576.png 1024w, https:\/\/www.easyhaul.com\/blog\/wp-content\/uploads\/2021\/03\/Blog-EH-Incoterms-2-1000x563.png 1000w, https:\/\/www.easyhaul.com\/blog\/wp-content\/uploads\/2021\/03\/Blog-EH-Incoterms-2-768x432.png 768w, https:\/\/www.easyhaul.com\/blog\/wp-content\/uploads\/2021\/03\/Blog-EH-Incoterms-2.png 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p><b>CPT<\/b><span style=\"font-weight: 400;\"> is similar to CIP, but the risk passes when the first carrier (either ground or marine shipper) gets the goods. New Incoterms\u00ae 2020 also include a <\/span><b>DAP<\/b><span style=\"font-weight: 400;\"> option: the seller is responsible for transportation costs, while the buyer pays for <\/span><a href=\"https:\/\/www.easyhaul.com\/blog\/2019\/11\/22\/shipping-a-car-overseas-learn-more-about-customs-clearance\/\"><span style=\"font-weight: 400;\">Customs clearance<\/span><\/a><span style=\"font-weight: 400;\"> and other import taxes.<\/span><\/p>\n<p><b>DAT<\/b><span style=\"font-weight: 400;\"> was changed to <\/span><b>DPU<\/b><span style=\"font-weight: 400;\"> in the list of Incoterms\u00ae 2020. The seller\/shipper is responsible for all expenses before <\/span><a href=\"https:\/\/www.easyhaul.com\/blog\/2020\/09\/16\/understanding-how-a-car-is-loaded-into-a-container\/\"><span style=\"font-weight: 400;\">loading onto a vessel<\/span><\/a><span style=\"font-weight: 400;\">, including Customs clearance for <\/span><a href=\"https:\/\/www.easyhaul.com\/blog\/2017\/05\/31\/what-to-expect-when-exporting-a-car\/\"><span style=\"font-weight: 400;\">export<\/span><\/a><span style=\"font-weight: 400;\">. The risk passes to the client as soon as a shipment is loaded.<\/span><\/p>\n<p><b>DDP<\/b><span style=\"font-weight: 400;\"> is the opposite of the EXW, as here the seller takes all the duties, including import to the destination country. <\/span><b>FCA<\/b><span style=\"font-weight: 400;\"> incoterm denotes the customer\u2019s onus on insurance and freight costs, while the seller delivers cleared goods to the arranged place.<\/span><\/p>\n<h2 style=\"text-align: center;\"><b>Marine Incoterms\u00ae<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">There are four marine Incoterms\u00ae:\u00a0<\/span><b><\/b><\/p>\n<ul>\n<li><b>CIF (cost, insurance, freight),<\/b><\/li>\n<li><b>CFR (cost and freight),<\/b><\/li>\n<li><b>FAS (free alongside ship),<\/b><\/li>\n<li><b>and FOB (free on board).<\/b><\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-1906\" src=\"https:\/\/www.easyhaul.com\/blog\/wp-content\/uploads\/2021\/03\/Blog-EH-Incoterms-3-1024x576.png\" alt=\"different types of incoterms\" width=\"1024\" height=\"576\" srcset=\"https:\/\/www.easyhaul.com\/blog\/wp-content\/uploads\/2021\/03\/Blog-EH-Incoterms-3-1024x576.png 1024w, https:\/\/www.easyhaul.com\/blog\/wp-content\/uploads\/2021\/03\/Blog-EH-Incoterms-3-1000x563.png 1000w, https:\/\/www.easyhaul.com\/blog\/wp-content\/uploads\/2021\/03\/Blog-EH-Incoterms-3-768x432.png 768w, https:\/\/www.easyhaul.com\/blog\/wp-content\/uploads\/2021\/03\/Blog-EH-Incoterms-3.png 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p><b>CIF:<\/b><span style=\"font-weight: 400;\"> the seller prepays a freight contract and delivers goods to the port\/terminal. Once the shipment is stowed on a vessel, the client is liable for any incurred payments. <\/span><b>CFR<\/b><span style=\"font-weight: 400;\"> is different: the seller has to carry all expenses for delivery to the destination port, while the customers are responsible for <\/span><a href=\"https:\/\/www.easyhaul.com\/blog\/2019\/08\/21\/protect-your-vehicle-shipping-insurance\/\"><span style=\"font-weight: 400;\">insurance<\/span><\/a><span style=\"font-weight: 400;\"> and Customs clearance in their country.<\/span><\/p>\n<p><b>FAS<\/b><span style=\"font-weight: 400;\"> is used when a freight forwarder is responsible for Customs clearance. Risks are passed to the buyer as soon as the goods undergo Customs inspection. <\/span><b>FOB<\/b><span style=\"font-weight: 400;\"> is one of the most common Incoterms\u00ae: it denotes the seller\u2019s responsibility to clear the goods for export and load them onto the vessel, while the buyer is responsible for risks and costs of this freight arrangement. FOB incoterm means that the shipment is delivered from <\/span><a href=\"https:\/\/www.easyhaul.com\/blog\/2020\/11\/04\/what-you-should-know-about-storage-during-shipping\/\"><span style=\"font-weight: 400;\">warehouse<\/span><\/a><span style=\"font-weight: 400;\"> to warehouse at a port.<\/span><\/p>\n<h2 style=\"text-align: center;\"><b>Bottom Line<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Different Incoterms\u00ae regulate the shipping industry, and navigating through them is easy with <\/span><a href=\"https:\/\/www.easyhaul.com\/\"><b>EasyHaul<\/b><\/a><span style=\"font-weight: 400;\">. We are proud to provide a suite of <\/span><a href=\"https:\/\/www.easyhaul.com\/blog\/2020\/09\/09\/shipping-services-easyhaul-offers\/\"><span style=\"font-weight: 400;\">shipping services<\/span><\/a><span style=\"font-weight: 400;\">, from domestic deliveries to handling international cargo freight. Start with a guaranteed shipping quote on our <\/span><a href=\"https:\/\/www.easyhaul.com\/\"><span style=\"font-weight: 400;\">homepage<\/span><\/a><span style=\"font-weight: 400;\"> by entering your vehicle\u2019s VIN, location, and destination country. <\/span><a href=\"https:\/\/www.easyhaul.com\/register\"><span style=\"font-weight: 400;\">Create an account<\/span><\/a><span style=\"font-weight: 400;\"> with us to <\/span><a href=\"https:\/\/www.easyhaul.com\/blog\/2020\/03\/18\/how-to-register-and-order-shipping-with-easyhaul\/\"><span style=\"font-weight: 400;\">place your shipping order<\/span><\/a><span style=\"font-weight: 400;\"> and don\u2019t forget to upload a copy of your government-issued ID along with your phone number to complete your registration. Uploading the <\/span><a href=\"https:\/\/www.salvagebid.com\/blog\/what-is-a-bill-of-sale\/\" rel=\"nofollow\"><span style=\"font-weight: 400;\">Bill of Sale<\/span><\/a><span style=\"font-weight: 400;\"> is mandatory for all clients who order shipping straight from <\/span><a href=\"https:\/\/www.autobidmaster.com\/\" rel=\"nofollow\"><b>AutoBidMaster<\/b><\/a><span style=\"font-weight: 400;\"> or <\/span><a href=\"https:\/\/www.salvagebid.com\/\" rel=\"nofollow\"><b>Salvagebid<\/b><\/a><span style=\"font-weight: 400;\">. <span data-sheets-root=\"1\">Also ClearVin offers fast and easy access to the original <a class=\"in-cell-link\" href=\"https:\/\/www.clearvin.com\/en\/window-sticker\/toyota\/\" target=\"_blank\" rel=\"noopener\">Toyota Window Sticker by VIN<\/a>.\u00a0 <\/span>Call us at <\/span><b>+1 (360) 776-3596 (6:00 AM &#8211; 4:00 PM PST, Monday to Friday)<\/b><span style=\"font-weight: 400;\"> or reach us out <\/span><a href=\"https:\/\/www.easyhaul.com\/contact-us\"><span style=\"font-weight: 400;\">online<\/span><\/a><span style=\"font-weight: 400;\">, and our team will be happy to answer your questions.<\/span><\/p>\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>International trade has been flourishing since the 1960s, which fostered the necessity of worldwide commerce regulations. Now, a separate UN branch, called the United Nations Commission on International Trade Law (UNCITRAL) facilitates intercontinental trade by designing laws and conventions to make commerce easier. The UNCITRAL has ratified 11 Incoterms\u00ae (international commercial terms) as the universal [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1908,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20,223,154,29,226,224],"tags":[256,257,235,230,232,236],"hashtags":[],"class_list":["post-1903","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-car-shipping-guides","category-costs-insurance-contracts","category-domestic-auto-transport","category-international-vehicle-shipping","category-logistics-industry-insights","category-salvage-auction-vehicle-shipping","tag-auto-transport-regulations-usa","tag-freight-and-logistics-trends","tag-international-customs-clearance","tag-open-transport","tag-salvage-car-shipping-insurance","tag-us-vehicle-import-regulations"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What Are Shipping Incoterms\u00ae - EasyHaul Blog<\/title>\n<meta name=\"description\" content=\"Learn Incoterms\u00ae 2020 and how they define costs, risks, and responsibilities in international vehicle shipping and global trade.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.easyhaul.com\/blog\/2021\/03\/24\/what-are-shipping-incoterms\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What Are Shipping Incoterms\u00ae - EasyHaul Blog\" \/>\n<meta property=\"og:description\" content=\"Learn Incoterms\u00ae 2020 and how they define costs, risks, and responsibilities in international vehicle shipping and global trade.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.easyhaul.com\/blog\/2021\/03\/24\/what-are-shipping-incoterms\/\" \/>\n<meta property=\"og:site_name\" content=\"EasyHaul Blog\" \/>\n<meta property=\"article:published_time\" content=\"2021-03-24T23:10:25+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-01-15T22:32:23+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.easyhaul.com\/blog\/wp-content\/uploads\/2021\/03\/Blog-EH-Incoterms-title-1.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"675\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Administrator\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.easyhaul.com\/blog\/2021\/03\/24\/what-are-shipping-incoterms\/\",\"url\":\"https:\/\/www.easyhaul.com\/blog\/2021\/03\/24\/what-are-shipping-incoterms\/\",\"name\":\"What Are Shipping Incoterms\u00ae - 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