REFERENCE
Incoterms 2020 Quick Reference
Plain-English reference to the 2020 Incoterms. Helpful for understanding what each one means and how it affects your shipment — not legal or contractual advice.
THE FULL LIST
Incoterms 2020
Incoterms (International Commercial Terms) define responsibilities between buyer and seller in international trade. They specify who pays for shipping, insurance, customs, and at what point risk transfers from seller to buyer. Always specify the version (Incoterms 2020) and the named place in your contracts.
| Term | Full Name | Transport Mode | Risk Transfer Point |
|---|---|---|---|
| EXW | Ex Works | Any mode | Seller's premises |
| FCA | Free Carrier | Any mode | Named place of delivery (origin) |
| FAS | Free Alongside Ship | Sea / Inland Waterway | Alongside vessel at origin port |
| FOB | Free on Board | Sea / Inland Waterway | On board vessel at origin port |
| CFR | Cost and Freight | Sea / Inland Waterway | On board vessel at origin port |
| CIF | Cost, Insurance and Freight | Sea / Inland Waterway | On board vessel at origin port |
| CPT | Carriage Paid To | Any mode | First carrier at origin |
| CIP | Carriage and Insurance Paid To | Any mode | First carrier at origin |
| DAP | Delivered at Place | Any mode | Named place at destination, before unloading |
| DPU | Delivered at Place Unloaded | Any mode | Unloaded at named place at destination |
| DDP | Delivered Duty Paid | Any mode | Buyer's premises, all duties paid |
FAS, FOB, CFR, and CIF are for sea and inland waterway only. FCA, CPT, and CIP apply to all transport modes.
YOUR QUOTE
How Incoterms affect your quote
The Incoterm you and your customer agree on isn’t just contractual — it changes how we quote and route your shipment.
Some Incoterms (like EXW or FCA) require us to break out origin charges separately and arrange specific handoffs at the seller’s facility. Others (like FOB or CIF) keep responsibility cleaner at the port of loading. DAP and DDP shift more cost and responsibility downstream to us, which affects the quote structure entirely.
If you’re working through Incoterms on a sales contract, that’s a conversation between you and your customer — we don’t advise on which one to choose. But once it’s agreed, the Incoterm tells us exactly how to quote, what to include, and what to coordinate.
Have an Incoterm in mind? Tell us when you request a quote. Not sure? We’ll work through what makes sense for the routing once you’ve decided with your customer.
AVOID THESE
Common Incoterm mistakes
Using FOB or CIF for air freight or containerized cargo — these terms are sea and inland waterway only. FCA, CPT, and CIP apply to all transport modes.
Forgetting to specify Incoterms version — always write "Incoterms 2020" in your contracts.
Not specifying the named place — "FOB Long Beach" is correct; "FOB" alone is incomplete.
Assuming Incoterms cover transfer of title — they only cover risk and cost responsibilities.
Specifying an Incoterm without understanding what insurance is included — only CIF and CIP require the seller to provide insurance, and at minimum coverage.
Have an Incoterm in mind?
Conveyco coordinates shipments under any Incoterm. Tell us what you’ve agreed and we’ll handle the operational details.