The eleven Incoterms® 2020 rules allocate delivery obligations, selected costs, and the point where risk passes from seller to buyer. They work best when the contract states a precise named place or port.

Delivery point

The location and condition in which the seller completes delivery under the chosen rule.

Cost allocation

Which party arranges or pays for carriage, loading, unloading, clearance, or insurance as the rule requires.

Risk transfer

The point at which loss or damage risk passes from seller to buyer—even when freight is paid farther ahead.

IMPORTANT LIMITS

The rule is not the entire sales contract.

Incoterms® rules do not determine price, payment terms, ownership transfer, product specifications, breach remedies, or the full customs and tax treatment. Those points remain in the sales contract and applicable law.

START WITH THE TRANSPORT MODE

Two families of rules.

Seven rules can be used with any mode or combination of modes. Four are reserved for sea and inland waterway transport when delivery is defined alongside or on board a vessel.

7 RULES

Any mode of transport

EXW, FCA, CPT, CIP, DAP, DPU, DDP

Suitable for road, rail, air, ocean, multimodal, and containerized movements when the named delivery point matches the transaction.

4 RULES

Sea and inland waterway only

FAS, FOB, CFR, CIF

Reserved for delivery alongside or on board a vessel at the named port. For containerized freight delivered to a terminal before loading, FCA may be more appropriate than FOB.

RULES FOR ANY MODE

Seven options for single-mode or multimodal shipments.

Compare the delivery point separately from the party paying the main carriage. Under CPT and CIP, for example, the seller pays to destination while risk passes earlier—when the goods are delivered to the first carrier.

EXW

Ex Works

Delivery and risk: When goods are placed at the buyer’s disposal at the named place, not loaded.

Transport: Buyer arranges the main carriage and usually export formalities.

FCA

Free Carrier

Delivery and risk: When the seller delivers to the buyer’s carrier at the named place.

Transport: Seller clears export; buyer arranges the main carriage.

CPT

Carriage Paid To

Delivery and risk: Risk transfers when goods reach the first carrier.

Transport: Seller pays carriage to the named destination; insurance is not required.

CIP

Carriage and Insurance Paid To

Delivery and risk: Risk transfers when goods reach the first carrier.

Transport: Seller pays carriage and the required higher-level cargo insurance to destination.

DAP

Delivered at Place

Delivery and risk: At the named destination, ready for unloading.

Transport: Seller carries to destination; buyer unloads and handles import clearance.

DPU

Delivered at Place Unloaded

Delivery and risk: After the seller unloads at the named destination.

Transport: Seller carries and unloads; buyer handles import clearance.

DDP

Delivered Duty Paid

Delivery and risk: At the named destination, ready for unloading.

Transport: Seller handles carriage, export and import clearance, duties, and taxes where legally possible.

SEA AND INLAND WATERWAY ONLY

Four port-to-port rules.

These rules use a named port of shipment or destination and depend on delivery alongside or on board the vessel. Cost and risk do not always transfer at the same point.

FAS

Free Alongside Ship

Delivery and risk: When goods are placed alongside the vessel at the named port of shipment.

Transport: Buyer arranges loading and the main ocean carriage.

FOB

Free On Board

Delivery and risk: When goods are on board the vessel at the named port of shipment.

Transport: Buyer arranges the main ocean carriage.

CFR

Cost and Freight

Delivery and risk: Risk transfers on board at origin.

Transport: Seller pays freight to the named destination port; insurance is not required.

CIF

Cost, Insurance and Freight

Delivery and risk: Risk transfers on board at origin.

Transport: Seller pays freight and minimum required insurance to the destination port.

CIP AND CIF

Both include insurance, but not at the same default level.

Under Incoterms® 2020, CIP normally requires broader cargo insurance than CIF. The parties can agree to different cover, but the contract should state that clearly.

BEFORE THE CONTRACT IS SIGNED

Write the rule so the delivery point is unmistakable.

A three-letter abbreviation alone is incomplete. Pair it with the exact named place or port and the edition of the rules.

FORMAT

Rule + named place + Incoterms® 2020

Example:
FCA Port of Baltimore, Maryland, USA, Incoterms® 2020

The named place should be precise enough to identify the intended delivery point.

CHECK

Five questions to resolve first.

Where exactly should delivery occur?
Who books and pays the main carriage?
When should risk transfer?
Who handles export and import clearance?
Is cargo insurance required, and at what level?

Official source: The International Chamber of Commerce publishes and maintains the Incoterms® rules. Review the ICC Incoterms® 2020 overview or obtain the official publication for transaction-specific use.

This page is general information, not legal, customs, insurance, or tax advice.

DOCUMENT READINESS

Required Shipping Documents

Document requirements vary by origin, destination, commodity, transport mode, and customs profile. BT Logistics will confirm the applicable checklist for each shipment rather than publish a generic list that may not fit your cargo.

Talk to a Logistics Specialist

FOR AN ACCURATE CHECKLIST

Start with the shipment profile.

Share the cargo description, origin, destination, transport mode, direction, and required timeline. Our team can then identify the documents that apply to the route and cargo.

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EQUIPMENT REFERENCE

Container Types & Dimensions

Use this chart as an initial reference for common dry, open-top, flat-rack, high-cube, and reefer equipment. Final availability, dimensions, payload, and carrier acceptance must be confirmed before booking.

BT Logistics container types and dimensions reference chart

IMPORTANT PLANNING NOTE

Dimensions and weights are approximate and may vary by manufacturer, equipment series, and carrier. For the 20′ reefer, confirm the equipment drawing with the shipping line: 5.453 m is commonly listed as an internal length, while the external length is approximately 6.058 m.

Open full-size specifications

COMMON QUESTIONS

What customers ask before the first move.

These answers cover the most common questions. Shipment-specific requirements are reviewed route by route.

Are you a freight forwarder or a carrier?

BT Logistics International is a freight forwarder and FMC-licensed NVOCC. We coordinate transportation with ocean carriers, airlines, truckers, customs brokers, warehouses, and overseas agents.

Do you handle both imports and exports?

Yes. We coordinate imports into the United States and exports from the United States across key international trade lanes.

Can you handle both full containers and smaller shipments?

Yes. We coordinate both FCL and LCL ocean freight, depending on the cargo volume, route, and customer requirements.

Do you provide customs clearance?

We coordinate with licensed customs brokers and assist with the flow of shipment information and documents. Customs brokerage is performed by the appropriately licensed party.

Can you coordinate transportation anywhere in the United States?

Yes. We can coordinate inland, air, and ocean transportation to and from locations throughout all 50 states.

What information is needed for a quote?

Origin, destination, commodity, dimensions, weight, package count, cargo availability date, Incoterms when applicable, and any special handling requirements.

READY TO PLAN YOUR SHIPMENT?

Include the selected rule and named place with your cargo details.

BT can review the routing details needed for a freight quote. The commercial parties remain responsible for agreeing on the Incoterms® rule in their sales contract.

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