Resources

Incoterms 2020 Guide

A practical reference covering the eleven Incoterms 2020 rules, showing how cost, risk, and insurance responsibilities are split.

Why Incoterms matter

Incoterms 2020 are the International Chamber of Commerce standard for splitting cost, risk, and insurance between buyer and seller in a cross-border trade. Choosing the right term up front avoids ambiguity at loading, on water, and at discharge.

Below are the ten Incoterms most commonly used for vegetable oil trades. The Premium Vertex desk most frequently quotes FOB, CIF, and DAP, but we can structure any term in the matrix.

EXW

Ex Works

Buyer collects the goods at our origin warehouse and arranges all onward transport, export clearance, and insurance.

Risk transfer: At the seller's premises
Cost: Buyer covers all transport
Insurance: Buyer's responsibility

FCA

Free Carrier

Used for containerised loads. We deliver to the named place (port, depot, or terminal) cleared for export.

Risk transfer: When delivered to the carrier
Cost: Seller to named place
Insurance: Buyer's responsibility

FOB

Free On Board

The classic bulk-vessel term. We load the goods on board the vessel nominated by the buyer at the port of shipment.

Risk transfer: Once goods are on board
Cost: Seller to ship's rail
Insurance: Buyer's responsibility

CFR

Cost & Freight

We pay the ocean freight to the named destination port, but risk passes to the buyer when goods cross the ship's rail at origin.

Risk transfer: On board at origin port
Cost: Seller pays freight to destination
Insurance: Buyer's responsibility

CIF

Cost, Insurance & Freight

Our most common term. We cover freight and minimum-cover marine insurance to destination port; risk passes on shipment.

Risk transfer: On board at origin port
Cost: Seller pays freight to destination
Insurance: Minimum cover by seller

CPT

Carriage Paid To

Multimodal equivalent of CFR — used for ISO tanks, flexitanks, and containerised flows.

Risk transfer: When goods reach first carrier
Cost: Seller to named destination
Insurance: Buyer's responsibility

CIP

Carriage & Insurance Paid To

Multimodal equivalent of CIF — Premium Vertex carries Institute Cargo Clauses (A) cover by default for containerised flows.

Risk transfer: When goods reach first carrier
Cost: Seller to named destination
Insurance: Maximum cover (ICC A) by seller

DAP

Delivered At Place

We deliver to the named destination ready for unloading. Buyer handles import clearance and unloading costs.

Risk transfer: At named destination
Cost: Seller pays to destination
Insurance: Seller's responsibility

DPU

Delivered At Place Unloaded

We deliver and unload at the named destination. Buyer handles import clearance.

Risk transfer: After unloading at destination
Cost: Seller pays to destination + unload
Insurance: Seller's responsibility

DDP

Delivered Duty Paid

Maximum service. We deliver to the buyer's door with all duties and taxes prepaid. Available on select corridors.

Risk transfer: At named destination
Cost: Seller pays everything
Insurance: Seller's responsibility