Incoterms (International Commercial Terms) are standardised ICC rules that define who is responsible for cost, risk, and tasks at each stage of an international shipment.

Which version is current?

Incoterms 2020 is the current edition, in force since 1 January 2020. Always state the version in your contract, e.g. 'FOB Shanghai, Incoterms 2020'.

Which Incoterms are most common?

FOB and CIF dominate sea freight, while FCA, CPT, and DAP are common for containers and multimodal transport. EXW and DDP sit at the two extremes of responsibility.

What's the difference between cost and risk?

Cost is who pays for each leg; risk is who bears loss or damage. For the C-terms (CFR, CIF, CPT, CIP) they differ — the seller pays freight to destination but risk passes much earlier.

Incoterms 2020

Incoterms 2020, made visual

Pick a rule and see who pays what and who's liable where — across the whole journey from seller to buyer.

Explore the rules

Choose an incoterm, then switch between cost and risk to see how responsibility shifts between seller and buyer.

Any transport mode

Sea & inland waterway

FOB

Free On Board

Seller delivers on board the vessel

Sea & inland waterway

Show

SellerBuyer

Risk

Hover a stage to see who is responsible.

SellerBuyerRisk

Stage	Who pays	Who's at risk
Export packaging	Seller	Seller
Loading at origin	Seller	Seller
Inland to origin port	Seller	Seller
Export customs	Seller	Seller
Origin terminal charges	Seller	Seller
Loading on main carrier	Seller	Seller
Main carriage (freight)	Buyer	Buyer
Destination terminal charges	Buyer	Buyer
Import customs & duty	Buyer	Buyer
Inland to destination	Buyer	Buyer
Unloading at destination	Buyer	Buyer

All 11 Incoterms

Grouped by transport mode. Tap any rule for a full breakdown.

Any transport mode

EXWEx WorksBuyer does everything FCAFree CarrierSeller hands off to the carrier, export cleared CPTCarriage Paid ToSeller pays carriage, risk passes to first carrier CIPCarriage and Insurance Paid ToCPT plus all-risk insurance DAPDelivered at PlaceSeller delivers ready for unloading DPUDelivered at Place UnloadedSeller delivers and unloads at destination DDPDelivered Duty PaidSeller does everything, including import duty

Sea & inland waterway

FASFree Alongside ShipSeller delivers alongside the vessel FOBFree On BoardSeller delivers on board the vessel CFRCost and FreightSeller pays freight, but risk passes at origin CIFCost, Insurance and FreightCFR plus minimum marine insurance

Frequently asked questions

What are Incoterms?: Incoterms (International Commercial Terms) are standardised ICC rules that define who is responsible for cost, risk, and tasks at each stage of an international shipment.
Which version is current?: Incoterms 2020 is the current edition, in force since 1 January 2020. Always state the version in your contract, e.g. 'FOB Shanghai, Incoterms 2020'.
Which Incoterms are most common?: FOB and CIF dominate sea freight, while FCA, CPT, and DAP are common for containers and multimodal transport. EXW and DDP sit at the two extremes of responsibility.
What's the difference between cost and risk?: Cost is who pays for each leg; risk is who bears loss or damage. For the C-terms (CFR, CIF, CPT, CIP) they differ — the seller pays freight to destination but risk passes much earlier.

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