According to iccwbo.org, Incoterms are “an essential part of the daily language of trade”. The following are common acronyms that may be used, each one beginning with either “C”, “D”, or “F”. “C” refers to Costs that the seller is responsible for. “D” refers to Destination, in that goods must arrive at the expected destination. “F” refers to Free of risk, meaning that the seller is responsible for goods being transported.
CFR: Cost & Freight
CIF: Cost, Insurance, & Freight
CPT: Carriage Paid To
CIP: Carriage & Insurance Paid To
DAT: Delivered at Terminal
DAP: Delivered at Place
DDP: Delivered Duty Paid
FCA: Free Carrier
FAS: Free Alongside Ship
FOB: Free On Board
Now and again, we may use words that are not often used in other industries. This glossary acts as a guide to trade vocabulary that can help in understanding certain terms and phrases we often use in the logistics world. To learn more, you can access the Glossary Of Shipping Terms published by the U.S. Department of Transportation and Maritime Administration.
The following is an overview of the vessel types that may be employed to transport goods.
General Cargo Vessels
Short Sea Vessels