Shipping terms or international trade terms are a set of terms that define the responsibilities of sellers and buyers for delivering goods according to sales contracts. They are identified by the International Chamber of Commerce and are widely used in commercial transactions.
Also read: Why Are Shipping Terms Important to the Trader
Among the Most Important Types of Terms
Terms That Apply to Any Means of Transportation of Goods
- EXW
- FCA
- CPT
- CIP
- DAT
- DAP
- DDP
Also read: Information About Shipping Terms
Shipping Terms That Apply to Marine Shipping Only
- FAS
- FOB
- CFR
- CIF
Also read: A Comprehensive Illustration of Shipping Containers
Shipping Terms That Apply to E-Commerce
Most e-commerce agreements use the terms EXW, CPT, and CIF.
Transactions between businesses and customers include CPT, CIF, and sometimes DDP.
All of these shipping terms include the buyer paying fees and taxes, except for DDP.