Incoterms are standard trade terms that define exactly who is responsible for shipping, insurance and risk at each stage of a journey. Getting them right protects your budget and avoids disputes.
EXW (Ex Works)
You take responsibility from the supplier’s door. The price is lowest on paper, but you arrange and pay for everything else — collection, export, freight and import. Best for experienced importers.
FOB (Free On Board)
The supplier delivers the goods onto the vessel and handles export clearance. You take over from that point, paying for sea freight, insurance and import. FOB is one of the most common and balanced terms.
CIF (Cost, Insurance and Freight)
The supplier covers freight and basic insurance to the destination port. Convenient, but you have less control over carrier choice and the insurance cover may be minimal.
Which should you choose?
If you want control and the best freight rates, FOB with your own forwarder is often ideal. If you prefer simplicity, CIF reduces what you arrange. EXW suits those who want maximum control of the whole chain.
Unsure which term to negotiate? Ask our team — we will help you pick the Incoterm that works best for your shipment and budget.