How many Incoterms 2020 rules are there and how are they split by mode?

There are eleven rules. Seven apply to any mode of transport, including multimodal: EXW, FCA, CPT, CIP, DAP, DPU, and DDP. The other four are for sea and inland-waterway transport only: FAS, FOB, CFR, and CIF, used when goods are delivered alongside or on board a vessel.

Why should I use FCA instead of FOB for containers?

FOB assumes goods are loaded over the ship's rail by the seller, but containers are usually handed to the carrier at a terminal days before loading. FCA passes risk at that hand-over point, matching reality. Using FOB for containers leaves a gap where neither party clearly bears risk at the terminal.

What is the difference between CIF and CIP?

Both have the seller pay carriage and insurance to the destination. CIF is sea-only and requires only minimum-cover marine insurance, with risk passing on board at origin. CIP works for any mode and requires broader all-risk cover, with risk passing when goods reach the first carrier.

Which Incoterm places the most obligation on the seller?

DDP, Delivered Duty Paid, puts the maximum obligation on the seller. The seller delivers the goods to the named destination cleared for import, paying all carriage, duties, and taxes. EXW, Ex Works, is the opposite extreme, with the buyer bearing almost everything from the seller's door.

What changed about DPU in Incoterms 2020?

DPU, Delivered at Place Unloaded, replaced the old DAT rule from Incoterms 2010. It is the only rule that requires the seller to unload the goods at the named destination. The change broadened it beyond terminals to any agreed place where unloading can take place.

What is the Incoterms by Mode of Transport?

Quick reference showing which of the 11 Incoterms 2020 rules apply to each transport mode. Filter by any-mode versus sea and inland-waterway only, with a plain-English summary of who bears cost, risk, and clearance under each rule. It runs free in your browser on Gera Tools, with nothing uploaded.

Incoterms by Mode of Transport

Name: Incoterms by Mode of Transport
Creator: Gera Tools
License: https://creativecommons.org/licenses/by/4.0/

Choosing an Incoterm for your transport mode

Incoterms 2020 are eleven standard trade terms that define who pays for carriage, who bears the risk of loss, and who clears the goods through customs. A key practical rule is that some apply to any mode of transport while four are reserved for sea and inland-waterway shipments. This reference lets you filter the eleven rules by mode and read what each one means.

How it works

The split is simple once you know it:

Any mode (road, rail, air, sea, multimodal):
  EXW  FCA  CPT  CIP  DAP  DPU  DDP

Sea & inland waterway only:
  FAS  FOB  CFR  CIF

The four sea-only rules assume the goods are physically handed over at the quay or on board the vessel, which is why they use port-based delivery points. The seven any-mode rules use a named place and a carrier hand-over, so they fit containers, trucks, aircraft, and combined journeys. Each rule also shifts the balance of cost and risk: EXW is minimum seller obligation, DDP is maximum.

The seller–buyer obligation spectrum

Thinking of Incoterms as a spectrum helps. At the seller-heavy end, DDP (Delivered Duty Paid) requires the seller to move goods all the way to the buyer’s named destination, cleared through import customs, with all duties paid. At the buyer-heavy end, EXW (Ex Works) means the buyer collects the goods from the seller’s premises and bears all costs and risks from that point. Most contracts fall somewhere in between.

For most international shipments, the commonly negotiated midpoints are:

FCA — risk passes when goods reach the named carrier, suitable for containerised or multimodal freight.
CIP — seller pays carriage and insurance to the destination; risk still passes at origin when goods reach the first carrier. Requires broader all-risk insurance cover than CIF.
DAP — seller bears risk and cost to the named destination, but the buyer handles import duties.

The FOB/CIF containerisation problem

The single most common error in international trade documents is using FOB or CIF for containerised cargo. Under FOB, risk passes at the ship’s rail at the named port of loading. In reality, a container is handed to the terminal operator days before the ship arrives and is not under the shipper’s control at that point. If goods are damaged at the terminal before loading, there is a genuine gap in which neither party clearly bears the risk under FOB’s literal terms.

FCA eliminates this gap by transferring risk when the goods reach the carrier (or the terminal, if the seller delivers them there). For containerised shipments, FCA named port is the more accurate term. Similarly, CPT or CIP are the any-mode equivalents of CFR and CIF, and better suited to containers.

Reserve FAS, FOB, CFR, and CIF for bulk cargo, breakbulk, and project freight where goods genuinely move alongside or over the rail of a named vessel.

What changed in Incoterms 2020

The 2020 revision made two notable changes: DPU replaced DAT, broadening the rule beyond port and terminal locations to any place where unloading can occur. And the CIP insurance requirement was raised from minimum Institute Cargo Clauses (C) cover to all-risk (A) cover, while CIF still requires only the minimum (C) cover. This makes CIP significantly more protective for the buyer than CIF for goods of comparable value.