Incoterms 2020 explained with real shipments
FOB, CIF, DAP and DDP, with who pays for what on a real Ningbo to Hamburg shipment.
Incoterms decide who pays for each leg of a shipment and who carries the risk. Here are the four you will meet most, using one real Ningbo to Hamburg box.
- FOB: the seller loads the ship, you pay from there.
- CIF: the seller pays freight and insurance to Hamburg, risk passes at loading.
- DAP: the seller delivers to your door, you clear import.
- DDP: the seller pays everything, including duties.
