Knowledge base
Incoterms 2020
EXW (Ex Works) The seller delivers the goods at its premises (warehouse, factory). The buyer picks up the goods and bears all costs and risks from the moment of loading.
FCA (Free Carrier) The seller delivers the goods to the carrier's terminal (port, airport, warehouse) in their country and clears them for export. Risk passes upon delivery to the carrier.
FOB (Free on Board) The seller is obligated to load the goods on board the vessel. Risk passes when the goods pass the rail (or, conventionally, when they are placed on the deck).
FAS (Free Alongside Ship) The seller places the goods alongside the vessel at the designated loading port (on the pier or barge). From this point on, the risk passes to the buyer.
CFR (Cost and Freight) The seller pays for delivery of the goods to the port of destination. The risk of loss passes at the port of shipment upon loading on board.
CIF (Cost, Insurance and Freight) Similar to CFR, but seller is required to provide minimum insurance.
CPT (Carriage Paid To) The seller pays for transportation to the specified destination. The risk of loss of the goods passes to the buyer upon delivery to the first carrier.
CIP (Carriage and Insurance Paid To) Similar to CPT, but the seller is required to provide insurance.
DPU (Delivered at Place Unloaded) New term for 2020 (replaced DAT): The seller delivers and unloads the goods at the named location (terminal or buyer's warehouse). The seller bears all risks until unloading. DAP (Delivered at Place): The seller delivers the goods to the named location (e.g., buyer's warehouse), but does not unload them. Risk passes once the goods are ready for unloading.
DDP (Delivered Duty Paid) The seller assumes maximum responsibility: delivering the goods to the buyer, passing through customs, and paying all duties and taxes in the destination country.
FCA (Free Carrier) The seller delivers the goods to the carrier's terminal (port, airport, warehouse) in their country and clears them for export. Risk passes upon delivery to the carrier.
FOB (Free on Board) The seller is obligated to load the goods on board the vessel. Risk passes when the goods pass the rail (or, conventionally, when they are placed on the deck).
FAS (Free Alongside Ship) The seller places the goods alongside the vessel at the designated loading port (on the pier or barge). From this point on, the risk passes to the buyer.
CFR (Cost and Freight) The seller pays for delivery of the goods to the port of destination. The risk of loss passes at the port of shipment upon loading on board.
CIF (Cost, Insurance and Freight) Similar to CFR, but seller is required to provide minimum insurance.
CPT (Carriage Paid To) The seller pays for transportation to the specified destination. The risk of loss of the goods passes to the buyer upon delivery to the first carrier.
CIP (Carriage and Insurance Paid To) Similar to CPT, but the seller is required to provide insurance.
DPU (Delivered at Place Unloaded) New term for 2020 (replaced DAT): The seller delivers and unloads the goods at the named location (terminal or buyer's warehouse). The seller bears all risks until unloading. DAP (Delivered at Place): The seller delivers the goods to the named location (e.g., buyer's warehouse), but does not unload them. Risk passes once the goods are ready for unloading.
DDP (Delivered Duty Paid) The seller assumes maximum responsibility: delivering the goods to the buyer, passing through customs, and paying all duties and taxes in the destination country.
Terminology in logistics
Shipper: The party indicated in the documents as the sender/supplier of the goods.
Consignee: The party indicated in the documents as the recipient of the goods.
Carrier: A company that carries out cargo transportation.
Forwarder: An intermediary who organizes transportation, document preparation, and related services.
Freight: The cost of transporting cargo, as well as the transportation process itself, which is typical for sea, air and road transport.
Consolidation: Combining of small shipments from different shippers into one large shipment to reduce shipping costs.
Multimodal transport: Transportation of cargo using two or more types of transport under one consignment note.
Bill of Lading: A document issued by the carrier to the cargo owner, confirming acceptance of the cargo for sea transportation and the right to dispose of it.
Customs warehouse: A place where goods under customs control are stored until they are cleared through customs.
Bonded Warehouse: A specialized customs warehouse that allows imported goods to be stored duty-free until they are sold.
Palletizing: The process of placing cargo on pallets for ease of transportation and storage.
Customs Clearance: The process of completing the formalities necessary to import or export goods across a border.
Incoterms: International rules that determine the terms of delivery (who pays for transportation, insurance, risk).
Consignee: The party indicated in the documents as the recipient of the goods.
Carrier: A company that carries out cargo transportation.
Forwarder: An intermediary who organizes transportation, document preparation, and related services.
Freight: The cost of transporting cargo, as well as the transportation process itself, which is typical for sea, air and road transport.
Consolidation: Combining of small shipments from different shippers into one large shipment to reduce shipping costs.
Multimodal transport: Transportation of cargo using two or more types of transport under one consignment note.
Bill of Lading: A document issued by the carrier to the cargo owner, confirming acceptance of the cargo for sea transportation and the right to dispose of it.
Customs warehouse: A place where goods under customs control are stored until they are cleared through customs.
Bonded Warehouse: A specialized customs warehouse that allows imported goods to be stored duty-free until they are sold.
Palletizing: The process of placing cargo on pallets for ease of transportation and storage.
Customs Clearance: The process of completing the formalities necessary to import or export goods across a border.
Incoterms: International rules that determine the terms of delivery (who pays for transportation, insurance, risk).
Abbreviations in logistics
FTL: Full Truck Load - a full truck load by a single shipper.
LTL: Less Than Truckload - a consolidated truck load.
FCL: Full Container Load - a full container load by a single shipper.
LCL: Less than Container Load - a consolidated load; a load smaller than a container.
TEU: Twenty-foot Equivalent Unit - a 20-foot equivalent unit (a measure of ship capacity).
SOC: Shipper's Owned Container - a container owned by the customer. The line charges only for transportation.
COC: Carrier Owned Container - you use the carrier's container, which must be returned within a specified time.
POL: Port of Loading - the port of loading.
POD: Port of Discharge/Delivery - the port of unloading/destination.
THC: Terminal Handling Charges.
T/T: Transit Time.
ETA: Estimated Time of Arrival.
ETD: Estimated Time of Departure.
FILO: Free In / Liner Out - loading at the shipper's expense, unloading at the liner's expense.
LILO: Liner In / Liner Out - loading and unloading at the liner's expense.
B/L: Bill of Lading.
AWB: Air Waybill.
CMR: Convention relative au contrat de transport international de Marchandise par Route - international consignment note evidencing the existence of a contract for the carriage of goods by road between countries that have ratified the CMR Convention.
RWB: Railway Bill / SMGS - International Railway Bill of Lading, which is the basic contract for the carriage of goods between countries party to the Agreement on International Rail Freight Transport.
INV / CI: Commercial Invoice.
PL: Packing list.
EX1 / ED: Export declaration.
CC Point: Customs Clearance Point.
CNEE: Consignee.
SHPR: Shipper.
CBM: Cubic meter.
DIM: Dimensions.
DG: Dangerous Goods.
LTL: Less Than Truckload - a consolidated truck load.
FCL: Full Container Load - a full container load by a single shipper.
LCL: Less than Container Load - a consolidated load; a load smaller than a container.
TEU: Twenty-foot Equivalent Unit - a 20-foot equivalent unit (a measure of ship capacity).
SOC: Shipper's Owned Container - a container owned by the customer. The line charges only for transportation.
COC: Carrier Owned Container - you use the carrier's container, which must be returned within a specified time.
POL: Port of Loading - the port of loading.
POD: Port of Discharge/Delivery - the port of unloading/destination.
THC: Terminal Handling Charges.
T/T: Transit Time.
ETA: Estimated Time of Arrival.
ETD: Estimated Time of Departure.
FILO: Free In / Liner Out - loading at the shipper's expense, unloading at the liner's expense.
LILO: Liner In / Liner Out - loading and unloading at the liner's expense.
B/L: Bill of Lading.
AWB: Air Waybill.
CMR: Convention relative au contrat de transport international de Marchandise par Route - international consignment note evidencing the existence of a contract for the carriage of goods by road between countries that have ratified the CMR Convention.
RWB: Railway Bill / SMGS - International Railway Bill of Lading, which is the basic contract for the carriage of goods between countries party to the Agreement on International Rail Freight Transport.
INV / CI: Commercial Invoice.
PL: Packing list.
EX1 / ED: Export declaration.
CC Point: Customs Clearance Point.
CNEE: Consignee.
SHPR: Shipper.
CBM: Cubic meter.
DIM: Dimensions.
DG: Dangerous Goods.
