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Shipping Terms and Glossary

June 7, 2021

There is a lot to consider when transporting goods internationally. One of the most important things is to make clear agreements with foreign customers and suppliers. Therefore, Incoterms® have been created to ensure that everyone knows what obligations they have and to limit any form of ambiguity as much as possible. Incoterms® stands for “International Commercial Terms”, or international delivery terms.

By agreeing on an Incoterm® you know who is responsible for arranging the transport, who is responsible for the costs surrounding the transport and who bears the risk of damage or loss of the goods during the transport. There are several Incoterms® with different obligations for seller (exporter) and buyer (importer).

Below a quick reference guide to ensure you never get tied up in transport terminology again.

Did you know?

The first ever ‘cargo only’ flight was recorded in November 1910 in the USA, using a Wright Model B aeroplane that flew 65 miles carrying a package of silk. The business owner used the pioneering transport more as a PR stunt to celebrate the opening of his store, with the bundle of silk cut into individual pieces and glued onto souvenir postcards.

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