Incoterms
Incoterms Selector Wizard
Answer four questions to get a recommended Incoterm rule with the reasoning, LC compatibility and typical alternatives.
Incoterms 2020
Recommended Incoterm
CIP
Carriage and Insurance Paid To
Any mode, seller arranges carriage and insurance - CIP requires ICC (A) all-risks cover under Incoterms 2020.
Risk transfer: When goods handed to first carrier at origin
Insurance: Seller - Institute Cargo Clauses (A) - all-risks (upgraded in Incoterms 2020)
LC suitability: best
Alternatives: CIF (bulk sea only)
What is the Incoterms wizard?
The Incoterms selector wizard is a decision-support tool that recommends the most appropriate ICC rule based on transport mode, cargo type, and party obligations. In 2026, it helps traders avoid common structural mismatches like using FOB for containerized cargo or EXW for documentary Letters of Credit.
Numerical Example: Multimodal Recommendation
CIP is recommended over CIF for containerized cargo as it covers risk transfer at the origin terminal rather than the vessel rail.
ModeSea - Containerized
FreightSeller Arranged
InsuranceSeller Arranged
PaymentLetter of Credit
RuleCIP (Incoterms 2020)
Source: ICC - Incoterms 2020 RulesOfficial Resource
Last reviewed: August 2026
Frequently asked questions
How do I choose the right Incoterm?
Start with the mode (sea-only rules FAS/FOB/CFR/CIF vs any-mode EXW/FCA/CPT/CIP/DAP/DPU/DDP), then the point where you want risk to pass, then who arranges main-carriage insurance and import clearance. LC transactions favour FCA, CIP and CPT because on-board B/L requirements under FOB/CFR/CIF cause frequent discrepancies with container shipments.
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Related calculators
All Incoterms tools →Incoterms 2020 Cost & Risk Split
Who pays what and where risk transfers under all Incoterms 2020 rules.
Incoterms Document Mapper
Documents needed under each Incoterm.
LC Discrepancy Auto-Scanner
Automated analysis of Letter of Credit narratives against UCP 600 and ISBP 821 rules to detect discrepancies before bank presentation.
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