Logistics

Incoterms® are trade terms developed by the International Chamber of Commerce (ICC) to specify details in trade contracts for global freight delivery.

Carriage Paid To (CPT) is an incoterm that refers to the delivery of the goods at the seller’s expense to a carrier or anyone the seller designates.

Carriage and Insurance Paid To (CIP) is an incoterm in which the seller covers the freight and insurance costs up to a designated party’s location.

A commercial invoice is a document specifying the amount and quantity of the sent goods for customs declaration purposes along with a packing list.

The importer of record (IOR) is an individual or entity in charge of filing paperwork and making payments to customs.

An exporter of record (EOR) is responsible for correct documentation preparation to comply with the required export specifications.

Full container load (FCL) is a term for ocean freight when the shipper ships cargo that fully occupies a container.

Less than Container Load (LCL) is a small shipment not enough for full container load (FCL) but is combined with other LCLshipments in one container.

The notify party is the person who is listed on a Bill of Lading or Air Waybill and will be informed when a shipment reaches its destination.

A master bill of lading (MBL) is a document title that serves as a transfer receipt issued to shipping companies by their carrier.

The consignee is the recipient of the transported goods to whom the cargo’s ownership will be assigned once it is cleared at the destination.

Delivered at Place (DAP) is an incoterm in which the seller undertakes all risks until the point of offloading at an agreed destination.

Delivered at Place Unloaded (DPU) is an incoterm that requires the seller to deliver the goods to a specific location after they have been unloaded.

EXW (Ex Works) is an incoterm that the buyer collects goods from the seller’s designated place, and bears all costs and risks up to the destination.

Free Alongside Ship (FAS) is an incoterm in which the seller delivers the cargo, clears the export, and places it alongside a vessel at a named port.