Focus on Your Business, We Handle the Logistics!

In international trade, the set of rules that define the responsibilities, costs, and risks between parties is referred to as Incoterms. Especially for companies new to foreign trade, understanding these terms correctly helps prevent operational errors and unexpected costs.

Let’s take a closer look at the most fundamental delivery terms that will guide your decision-making in logistics processes:

EXW (Ex Works): The seller’s responsibility ends when the goods are made available at their premises (factory, warehouse, etc.). From this point onward, all transportation, customs procedures, and risks are entirely borne by the buyer.

FOB (Free On Board): The seller is responsible until the goods are loaded onto the vessel at the specified port. Commonly used in sea freight, the risk transfers to the buyer once the goods are on board.

CIF (Cost, Insurance, and Freight): The seller covers the main transportation cost (freight) and insurance up to the destination port. Although the risk transfers to the buyer at the port of loading, the cost burden remains with the seller.

DAP (Delivered at Place): The seller’s responsibility is fulfilled when the goods are delivered to a specified location in the buyer’s country (excluding unloading). In this term, import customs procedures and taxes are the responsibility of the buyer.

DDP (Delivered Duty Paid): This term represents the maximum obligation for the seller. The seller delivers the goods to the buyer’s doorstep and covers all import customs procedures, duties, and taxes. The buyer is only responsible for unloading the goods.

Choosing the right delivery term directly impacts not only your logistics costs but also your operational risk management. As Cenker Logistics, with over 20 years of experience, we do not only provide transportation services but also offer strategic consultancy on selecting the most secure and cost-efficient Incoterms model for your business processes.

* DPU Note: Refers to the delivery of goods at the place of destination, unloaded from the means of transport.