Incoterms 2020 Comparison Tool
Incoterms are the eleven International Chamber of Commerce trade rules that fix, in advance, where the seller's obligation ends and the buyer's begins. This explorer restates each rule's risk-transfer point, cost split, and clearance responsibility as a filterable matrix — then flags which rules structurally match containerized FCL, LCL groupage, or air handovers.
Incoterms 2020 Comparison Explorer
Filter the eleven ICC Incoterms 2020 rules by transport scenario and compare risk transfer points and cost division.
Goods handed to the carrier at a container yard or terminal
| Rule | Fit for scenario | Risk transfers to buyer | Main carriage | Insurance | Export / Import clearance | Modes |
|---|---|---|---|---|---|---|
| EXWEx Works | Use with caution | Goods placed at buyer's disposal at seller's premises, not loaded | Buyer pays | Not allocated by rule | Buyer / Buyer | Any mode |
| FCAFree Carrier | Recommended fit | Handover to the buyer-nominated carrier at the named place | Buyer pays | Not allocated by rule | Seller / Buyer | Any mode |
| CPTCarriage Paid To | Usable | Handover to the first carrier at origin; risk runs ahead of the paid freight | Seller pays | Not allocated by rule | Seller / Buyer | Any mode |
| CIPCarriage and Insurance Paid To | Usable | Handover to the first carrier at origin | Seller pays | Seller obligated | Seller / Buyer | Any mode |
| DAPDelivered at Place | Usable | Named destination place, arriving ready for unloading | Seller pays | Not allocated by rule | Seller / Buyer | Any mode |
| DPUDelivered at Place Unloaded | Usable | Named destination, after unloading from the arriving conveyance | Seller pays | Not allocated by rule | Seller / Buyer | Any mode |
| DDPDelivered Duty Paid | Usable | Named destination place, ready for unloading; seller clears import | Seller pays | Not allocated by rule | Seller / Seller | Any mode |
| FASFree Alongside Ship | Use with caution | Goods placed alongside the vessel at the named port of shipment | Buyer pays | Not allocated by rule | Seller / Buyer | Sea / waterway |
| FOBFree on Board | Use with caution | Goods on board the vessel at the named port of shipment | Buyer pays | Not allocated by rule | Seller / Buyer | Sea / waterway |
| CFRCost and Freight | Use with caution | Goods on board the vessel at the port of shipment | Seller pays | Not allocated by rule | Seller / Buyer | Sea / waterway |
| CIFCost, Insurance and Freight | Use with caution | Goods on board the vessel at the port of shipment | Seller pays | Seller obligated | Seller / Buyer | Sea / waterway |
Fit guidance follows the ICC's published advice that containerized cargo is handed over at a terminal or yard, which the FCA / CPT / CIP rules describe better than the on-board ship rules (FOB, CFR, CIF, FAS). Ex Works keeps a caution flag because the buyer carries loading and export-clearance risk.
The Three Variables Every Incoterm Fixes
Definition: an Incoterm is a three-letter shorthand that allocates, between seller and buyer, (1) the cost of transport legs, (2) the point at which risk of loss or damage passes, and (3) the responsibility for export and import customs clearance. Price, payment terms, and title transfer are not covered by the rules — those stay in your sales contract.
| Rule | Group logic | Risk transfer formula | Cost boundary formula |
|---|---|---|---|
| E-group (EXW) | Seller minimum: goods available at own door | risk → buyer at goods made available, not loaded | seller pays 0 legs · buyer pays 100% |
| F-group (FCA FAS FOB) | Seller delivers to a named point; buyer buys main carriage | risk → buyer at named handover point | seller pays origin legs · buyer pays main carriage |
| C-group (CPT CIP CFR CIF) | Seller pays main carriage, but risk transfers early | risk → buyer at origin handover (first carrier / on board) | seller pays through destination port · risk ≠ cost point |
| D-group (DAP DPU DDP) | Seller bears cost and risk to the destination | risk → buyer at named destination (before/after unloading) | seller pays door-to-destination · DDP adds import duty |
Scope and basis statement
All rule facts on this page are restated from Incoterms 2020 (ICC Publication 723E), a public standard published by the International Chamber of Commerce. The scenario-fit flags are our reading of the ICC's own containerized-cargo guidance and are decision support, not legal advice; the binding text is the licensed ICC publication and your contract. This tool performs no price or rate calculation.
Incoterms 2020 FAQ
What are the 11 rules of Incoterms 2020?
Incoterms 2020 (ICC Publication 723E) defines eleven rules in two families: seven rules for any mode of transport (EXW, FCA, CPT, CIP, DAP, DPU, DDP) and four rules for sea and inland waterway transport (FAS, FOB, CFR, CIF).
Which Incoterm should I use for containerized sea freight?
For containers handed over at a terminal or yard, FCA is the structurally correct rule, because risk transfers when the goods reach the carrier at the named place — not when they are physically placed on board the vessel. The ICC itself recommends FCA over FOB for containerized cargo. CPT, CIP, DAP, DPU and DDP also fit, each shifting more cost onto the seller.
Where does risk actually transfer under FOB versus CIF?
Both FOB and CIF transfer risk at the same physical point: when the goods are on board the vessel at the named port of shipment. The difference is cost, not risk — under CIF the seller additionally pays freight and mandatory insurance to the destination port, yet the buyer still bears loss or damage occurring after loading.
Does any Incoterm 2020 rule force the seller to buy cargo insurance?
Only two rules create a mandatory insurance obligation: CIP (any transport mode) and CIF (sea and inland waterway). Under CIP the seller must insure up to the maximum cover available under Institute Cargo Clauses A; under CIF the minimum is Institute Cargo Clauses C coverage.
Last reviewed: September 2026 · Standard source: Incoterms 2020, ICC Publication 723E.