Incoterms Explained in Plain English

What are INCOTERMS?

‘Incoterms’ stands for international commercial terms. Incoterms rules are a global standard set of pre-defined agreements that help faciliate international trade by designating when delivery takes place. They describe which party is responsible for which tasks, risks, and costs. While they often seem complex, they are designed to be used as a shorthand to make international trade easier and better defined.

Start learning more today with Roy Becker, an international banker with years of experience using Incoterms. In the full video, Roy goes through each of the Incoterms rules, what they mean in plain english, and what is new with the latest round of revisions in Incoterms 2020.

Why SHOULD YOU care about INCOTERMS?

International shipping is a complex process that involves many parties, each with their own interests and agendas.

If you're not familiar with the Incoterms rules, it can be hard to know what your rights are when an international shipment goes wrong. This makes it difficult to have confidence with importing and exporting.

CAP Worldwide provides a full suite of customized transportation solutions. For international shipping, this often involves understanding and choosing the right Incoterm rule that best supports your business interests. CAP Worldwide offers international logistics advice from experts who understand the ins and outs of global commerce. Our operations team will help you avoid unnecessary costs, wasted time, and missed opportunities so your business can focus on what matters most - growing your bottom line!

How to learn more about INCOTERMS?

As Roy referenced in the video, there are two invaluable book resources to have on hand as a guide. First is the official Incoterms 2020 book published by the International Chamber of Commerce: https://iccwbo.org/resources-for-business/incoterms-rules/incoterms-2020/

For people in the United States, the second book recommendation is Frank Reynolds’ Incoterms for Americans: https://www.incoterms-for-americans.com/

How do I choose an incoterm?

There may have to be a negotiation where the buyer and selller give and take based on what’s most important to each party. If you are still unsure which Incoterm rule best protects your interests, just contact us at CAP Worldwide to help you and your business. Our operations team will be happy to listen to your situation and advise on which Incoterms rule or rules put you in the ideal position for your international shipping.