What are Shipment Terms

Shipment terms refer to the specific terms and conditions that govern the transport of goods from the point of origin to the final destination.

These terms typically include details about the responsibilities and obligations of the shipper, the carrier, and the recipient, as well as information about payment, insurance, and liability.

Here are some common shipment terms that you may encounter:

EXW (Ex Works): This term indicates that the buyer is responsible for arranging and paying for all transportation costs from the point of origin.

FOB (Free on Board): This term indicates that the seller is responsible for loading the goods onto the carrier at the point of origin. Once the goods are loaded, the buyer assumes responsibility for transportation and any associated costs.

CIF (Cost, Insurance, and Freight): This term indicates that the seller is responsible for arranging and paying for the cost of the goods, insurance, and freight to the point of destination.

CIP (Carriage and Insurance Paid to): This term indicates that the seller is responsible for arranging and paying for the cost of transportation and insurance to the point of destination.

DAP (Delivered at Place): This term indicates that the seller is responsible for arranging and paying for transportation to the point of destination, but the buyer is responsible for unloading and any associated costs.

DDP (Delivered Duty Paid): This term indicates that the seller is responsible for arranging and paying for all costs associated with transporting the goods to the point of destination, including customs clearance and any applicable taxes or duties.

These terms are often negotiated between the parties involved in the shipment and can have a significant impact on the overall cost and liability associated with transporting goods. It's important to carefully review and understand the shipment terms before agreeing to them.