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Incoterms® 2020 Guide

Understand how the 11 Incoterms® 2020 rules allocate delivery obligations, risk and carriage costs.

Incoterms® 2020 rules
11
Incoterms® 2020 rules
rules for any mode
7
rules for any mode
sea & inland waterway rules
4
sea & inland waterway rules
ICC edition
2020
ICC edition

Overview

Plan with Incoterms® 2020 Guide

The Incoterms® 2020 Guide explains the eleven trade rules published by the International Chamber of Commerce. Each rule sets out where the seller delivers the goods, when risk passes to the buyer and who pays for main carriage, insurance and export and import clearance.

Seven rules apply to any mode of transport, including multimodal container shipments: EXW, FCA, CPT, CIP, DAP, DPU and DDP. Four apply only to sea and inland waterway transport: FAS, FOB, CFR and CIF. Choosing a sea-only rule for containerised cargo can leave the parties with an unintended gap in risk.

Incoterms® rules do not cover transfer of ownership, payment terms or remedies for breach. They should be used with a precisely named place and read alongside the sales contract. This guide is a summary; for specific transactions, refer to the ICC rules and take trade or legal advice.

  • Search or act using an accurate shipment or account reference.
  • Review assumptions, planned dates and confirmed events distinctly.
  • Share information only with authorised colleagues.
  • Escalate exceptional cargo and time-critical decisions to FSC.
  • Keep booking and transport documents as the governing record.

11 rules

Tool capability

Built for operational clarity

What you can do with Incoterms® 2020 Guide

A focused set of capabilities helps teams move from information to an appropriate next action.

01

Rule selection

A short explanation of each of the eleven rules helps buyers and sellers choose the term that matches their responsibilities.

02

Risk transfer

See exactly where risk passes from seller to buyer under each rule, the point most often misunderstood in practice.

03

Cost allocation

Understand who pays for main carriage, insurance, export clearance and import duties under each term.

04

Mode applicability

Rules are grouped by whether they apply to any mode or only to sea and inland waterway transport.

05

Named place clarity

Guidance on naming the delivery place precisely, which is essential to avoid disputes over cost and risk.

06

Trade term guidance

Practical notes on common pitfalls, such as using FOB for containers, with a recommendation to seek advice for specific contracts.

Operational context

Rules by transport applicability

Illustrative planning distribution; actual availability and performance depend on route, service and data source.
92%
FSC schedule reliability (2025)
24/7
Portal access
180+
Countries served

How it works

Using Incoterms® 2020 Guide

Follow these steps to use the tool responsibly and make the result actionable.

  1. 01

    Identify the mode

    Decide whether the shipment is containerised, multimodal or conventional sea cargo.

  2. 02

    Agree responsibilities

    Decide who will arrange main carriage, insurance and clearance.

  3. 03

    Select the rule

    Choose the Incoterms® rule that matches those responsibilities.

  4. 04

    Name the place

    Specify the exact delivery place or port in the contract.

  5. 05

    Align logistics

    Share the agreed term with FSC so bookings and documents match.

Reference

Incoterms® 2020 rules: risk and main carriage

High-level summary only. Named place/port, delivery point and contract wording matter; consult the ICC rules and obtain trade advice for your transaction.

RuleModeRisk transfersWho pays main carriage
EXWAnyGoods placed at seller’s disposalBuyer
FCAAnyWhen delivered to buyer’s nominated carrier at agreed placeBuyer
CPTAnyOn handover to first carrierSeller
CIPAnyOn handover to first carrierSeller
DAPAnyAt destination, ready for unloadingSeller
DPUAnyAt destination after unloadingSeller
DDPAnyAt destination, import-cleared and ready for unloadingSeller
FASSea / inland waterwayAlongside vessel at shipment portBuyer
FOBSea / inland waterwayOn board vessel at shipment portBuyer
CFRSea / inland waterwayOn board vessel at shipment portSeller
CIFSea / inland waterwayOn board vessel at shipment portSeller

In operation

Connected logistics information

FSC digital tools support better coordination across transport and customer workflows. Access and available content depend on account permissions, route and operational data sources.

Connected logistics information

FAQ

Frequently asked questions

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FCA, CPT or CIP are usually more suitable than FOB, CFR or CIF, because risk passes when goods are handed to the carrier rather than when loaded on board.

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