Useful Tools

Guide to Incoterms

International Commercial Terms ('Incoterms') are internationally recognised standard trade terms used in sales contracts. They're used to make sure the buyer and the seller know:

  • Who is responsible for the cost of transporting the goods, including insurance, taxes and duties.
  • Where the goods should be picked up from and transported to.
  • Who is responsible for the goods at each step during transportation.

The current set of Incoterms is 'Incoterms 2010'. A copy of the full terms is available from the International Chamber of Commerce.

EXW - EX WORKS

The seller makes the goods available to be collected at their premises and the buyer is responsible for all other risks, transportation costs, taxes and duties from that point onwards. This term is commonly used when quoting a price.

FCA - FREE CARRIER

The seller gives the goods, cleared for export, to the buyer's carrier at a specified place. The buyer is then responsible for getting transported to the specified place of final delivery. This term is commonly used for containers travelling by more than one mode of transport.

CPT - CARRIAGE PAID TO

The seller pays to transport the goods to the specified destination. Responsibility for the goods transfers to the buyer when the seller passes them to the first carrier.

CIP - CARRIAGE AND INSURANCE PAID

The seller pays for insurance as well as transport to the specified destination . Responsibility for the goods transfers to the buyer when the seller passes them to the first carrier.

CIP ('Carriage and Insurance Paid') is commonly used for goods being transported by container by more than one mode of transport. If transporting only by sea, CIF is often used.

DAT - DELIVERED AT TERMINAL

The seller pays for transport to a specified terminal at the agreed destination. The buyer is responsible for the cost of importing the goods. The buyer takes responsibility once the goods are unloaded at the terminal.

DAP - DELIVERED AT PLACE

The seller pays for transport to the specified destination, but the buyer pays the costs of importing the goods. The seller takes responsibility for the goods until they're ready to be unloaded by the buyer.

DDP - DELIVERED DUTY PAID

The seller is responsible for delivering the goods to the named destination in the buyer's country, including all costs involved.

FAS - FREE ALONGSIDE SHIP

The seller puts the goods alongside the ship at the specified port they're going to be shipped from. The seller must get the goods ready for export, but the buyer is responsible for the cost and risk involved in loading them.

This term is commonly used for heavy-lift or bulk cargo (e.g. generators, boats), but not for goods transported in containers by more than one mode of transport (FCA is usually used for this).

FOB - FREE ON BOARD

The seller must get the goods ready for export and load them onto the specified ship. The buyer and seller share the costs and risks when the goods are on board. This term is not used for goods transported in containers by more than one mode of transport (FCA is usually used for this).

CFR - COST AND FREIGHT

The seller must pay the costs of bringing the goods to the specified port. The buyer is responsible for risks when the goods are loaded onto the ship.

CIF - COST, INSURANCE & FREIGHT

The seller must pay the costs of bringing the goods to the specified port. They also pay for insurance. The buyer is responsible for risks when the goods are loaded onto the ship.

Guide to Container Specifications

Standard Container

-Standard 20"Standard 40"
Length19'4" / 5.900m39'5" / 12.036m
Width7'8" / 2.350m7'8" / 2.350m
Height7'10" / 2.393m7'10" / 2.392m
Door Width7'8" / 2.342m7'8" / 2.340m
Door Height7'6" / 2.280m7'6" / 2.280m
Capacity1.172 ft3 / 32.2 m32.390 ft3 / 67.7 m3
Tare Weight4,916 Lbs / 2,230 Kgs8,160 Lbs / 3,700 Kgs
Maxi Cargo47,900 Lbs / 21,770 Kgs59,040 Lbs / 26,780 Kgs

Upgraded Container

-Upgraded 20"High Cube 40"
Length19'4" / 5.900 m39'5" / 12.036 m
Width7'7" / 2.311 m7'8" / 2.350 m
Height7'10" / 2.390 m8'10" / 2.697 m
Door Width7'6" / 2.286 m7'8" / 2.338 m
Door Height7'6" / 2.280 m8'5" / 2.585 m
Capacity1.150 ft3 / 32.63 m32.694 ft3 / 76.3 m3
Tare Weight5,060 Lbs / 2,300 Kgs8,750 Lbs / 3,970 Kgs
Maxi Cargo61,996 Lbs / 28,180 Kgs58,450 Lbs / 26,510 Kgs

Reefers Container

-Reefer 20"Reefer 40"Reefer 40" High Cube
Length17'8" / 5.425 m37'8" / 11.493 m37'11" / 11.557 m
Width7'5" / 2.275 m7'5" / 2.270 m7'6" / 2.294 m
Height7'5" / 2.260 m7'2" / 2.197 m8'2" / 2.500 m
Door Width7'5" / 2.258 m7'5" / 2.282 m7'6" / 2.294 m
Door Height7'3" / 2.216 m7'0" / 2.155 m8'0" / 2.440 m
Capacity1.000 ft3 / 28.3 m32.040 ft3 / 57.8 m32.344 ft3 / 66.6 m3
Tare Weight7,040 Lbs / 3,200 Kgs10,780 Lbs / 4,900 Kgs9,900 Lbs / 4,500 Kgs
Maxi Cargo45,760 Lbs / 20,800 Kgs56,276 Lbs / 25,580 Kgs57,561 Lbs / 25,980 Kgs

Open Top

-Open Top 20"Open Top 40"
Length19'4" / 5.894 m39'5" / 12.028 m
Width7'7" / 2.311 m7'8" / 2.350 m
Height7'8" / 2.354 m7'8" / 2.345 m
Door Width7'6" / 2.286 m7'8" / 2.341 m
Door Height7'2" / 2.184 m7'5" / 2.274 m
Capacity1,136 ft3 / 32,23 m32,350 ft3 / 65,5 m3
Tare Weight5,280 Lbs / 2,400 Kgs8,490 Lbs / 3,850 Kgs
Maxi Cargo47,620 Lbs / 21,600 Kgs58,710 Lbs / 26,630 Kgs

Flat Rack

-Flat Rack 20"Flat Rack 40"
Length18'5" / 5.61 m39'7" / 12.06 m
Width7'3" / 2.228 m7'3" / 2.228 m
Height7'4" / 2.233 m7'4" / 2.233 m
Tare Weight5,280 Lbs / 2,530 Kgs12,081 Lbs / 5,479 Kgs
Maxi Cargo61,117 Lbs / 27,722 Kgs85,800 Lbs / 38,918 Kgs