Transport obligations, costs and risks
 
  Seller
Carrier Buyer
         
Group E   Departure    
Under EXW, the seller minimizes his risk by only making the goods available at  his own premises
           
EXW 
EX Works   
Carriage of goods
Risk  
  Cost  
           
Critical points
  • Carriage to be arranged by the buyer
  • Risk transfer from the the seller to the buyer when the goods are at the disposal of the buyer
  • Cost transfer from the seller to the buyer when the goods are at the disposal of the buyer
         
Group F              Main carriage not paid by seller        
Under F Terms, and under FCA unless otherwise agreed, the seller arranges and pays for the pre-carriage in the country of export 
 
 
   
FCA 
Carriage of goods
Free CArrier   Risk
  Cost
         
Critical points
  • Carriage to be arranged by the buyer or by the seller on the buyer's behalf
  • Risk transfer from the the seller to the buyer when the goods have been delivered to the carrier at the named place
  • Cost transfer from the the seller to the buyer when the goods have been delivered to the carrier at the named place
         
FAS   Carriage of goods
Free Alongside Risk
Ship Cost
         
Critical points
  • Carriage to be arranged by the buyer
  • Risk transfer from the seller to the buyer when the goods have been placed alongside the ship
  • Cost transfer from the seller to the buyer when the goods have been placed alongside the ship
         
FOB 
Free On Board  
Carriage of goods
Risk
  Cost
         
Critical points
  • Carriage to be arranged by the buyer
  • Risk transfer from the seller to the buyer when the goods pass the ship's rail
  • Cost transfer from the seller to the buyer when the goods pass the ship's rail
         
Group C     Main Carriage paid by seller                     
Under C Terms the seller arranges and pays for the the main Carriage but without assuming the risk of the main carriage 
         
CFR 
Cost and FReight  
Carriage of goods
Risk
  Cost
         
Critical points
  • Carriage to be arranged by the seller
  • Risk transfer from the seller to the buyer when the goods pass the ship's rail
  • Cost transfer at port of destination, buyer paying such costs as are not for the seller's account under the contract of carriage
         
CIF  Carriage of goods
Cost, Insurance Risk
and  Freight Cost
         
Critical points
  • Carriage and insurance to be arranged by the seller
  • Risk transfer from the seller to the buyer when the goods pass the ship's rail
  • Cost transfer at port of destination, buyer paying such costs as are not for the seller's account under the contract of carriage
         
CPT 
Carriage Paid To  
Carriage of goods
Risk
  Cost
         
Critical points
  • Carriage to be arranged by the seller
  • Risk transfer from the the seller to the buyer when the goods have been delivered to the carrier
  • Cost transfer at place of destination, buyer paying such costs as are not for the seller's account under the contract of carriage
         
CIP  Carriage of goods
Carriage and Risk
InsurancePaid Cost
         
Critical points
  • Carriage and insurance to be arranged by the seller
  • Risk transfer from the the seller to the buyer when the goods have been delivered to the carrier
  • Cost transfer at place of destination, buyer paying such costs as are not for the seller's account under the contract of carriage
         
Group D           Arrival      
Under D Terms the seller's cost/risk is maximized because he must make the goods available upon arrival at the agreed destination
         
DAF 
Delivered At
Carriage of goods
Risk
Frontier Cost
         
Critical points
  • Carriage to be arranged by the seller
  • Risk transfer from the the seller to the buyer when the goods have been delivered at the frontier
  • Cost transfer from the the seller to the buyer when the goods have been delivered at the frontier
         
DES 
Delivered Ex
Carriage of goods
Risk
Ship Cost
         
Critical points
  • Carriage to be arranged by the seller
  • Risk transfer from the the seller to the buyer when the goodsare placed at the disposal of the buyer on board the ship
  • Cost transfer from the the seller to the buyer when the goodsare placed at the disposal of the buyer on board the ship
         
DEQ 
Delivered Ex Quay
Carriage of goods
Risk
  Cost
         
Critical points
  • Carriage to be arranged by the seller
  • Risk transfer from the the seller to the buyer when the goodsare placed at the disposal of the buyer on the quay
  • Cost transfer from the the seller to the buyer when the goodsare placed at the disposal of the buyer on the quay
         
DDU
Delivered Duty 
Carriage of goods
Risk
Unpaid Cost
         
Critical points
  • Carriage to be arranged by the seller
  • Risk transfer from the the seller to the buyer when the goodsare placed at the disposal of the buyer
  • Cost transfer from the the seller to the buyer when the goodsare placed at the disposal of the buyer
         
DDP  
Delivered Duty
Carriage of goods
Risk
Paid Cost
         
Critical points
  • Carriage to be arranged by the seller
  • Risk transfer from the the seller to the buyer when the goodsare placed at the disposal of the buyer
  • Cost transfer from the the seller to the buyer when the goodsare placed at the disposal of the buyer