Incoterms 2020 Tools
Understand who pays what, where risk transfers and which documents each side must provide under all 11 Incoterms® 2020 rules.
Incoterms® 2020 are the ICC's 11 three-letter rules that assign costs, risk and delivery obligations between seller and buyer. They replaced Incoterms 2010, keeping most rules identical but replacing DAT with DPU and clarifying insurance under CIP (raising it to Institute Cargo Clauses A) versus CIF (staying at Clauses C).
The correct rule depends on transport mode. FOB, FAS, CFR and CIF are for sea and inland waterway with cargo loaded on-board a vessel - never containers stuffed at a CFS or CY. For containers, FCA, CPT, CIP, DAP, DPU or DDP apply. Misapplication is one of the most common sources of LC discrepancy under UCP 600 Art. 14.
Our Incoterms Selector Wizard walks you through commodity, transport mode, insurance preference and counterparty trust to recommend a rule; the Document Mapper lists mandatory and negotiable documents per rule; and the Payment-Terms matrix cross-references Incoterm choice against LC, DP, DA and open account.
Frequently asked questions
What is the difference between Incoterms 2010 and 2020?
DAT (Delivered at Terminal) was renamed DPU (Delivered at Place Unloaded) to reflect any unloading location. CIP insurance was raised to Institute Cargo Clauses A (all-risks) while CIF stayed at Clauses C. FCA gained an option for the buyer to instruct their carrier to issue an on-board bill of lading to the seller.
Which Incoterm should I use for container shipments?
Use FCA, CPT, CIP, DAP, DPU or DDP. FOB, FAS, CFR and CIF are for cargo loaded on-board a specific vessel and should not be used for containers stuffed at a CFS or CY - the seller retains risk until on-board loading, which is impractical for containers.
Who pays for insurance under CIF and CIP?
The seller. Under CIF, the seller must arrange minimum-cover marine insurance (Institute Cargo Clauses C) for 110% of the invoice value. Under CIP (2020), the seller must arrange all-risks cover (Institute Cargo Clauses A) for the same 110%.
Where does risk transfer under FOB?
Under FOB (Free on Board), risk transfers when the goods are placed on-board the named vessel at the named port of shipment. Before that moment, risk is on the seller; after, it is on the buyer.