Air, road, rail, courier and containerized sea use any-mode rules. FAS, FOB, CFR, CIF are for bulk or breakbulk sea only.
The Incoterm sets who pays. TallyHaul checks they actually did.
When the invoice charges you for a cost the Incoterm says wasn't yours, TallyHaul flags it and drafts the dispute.
Book a demoAll 11 Incoterms 2020: who pays for what
Filter by transport mode. Click any row for the full breakdown.
| Incoterm | Mode | Export | Main freight | Insurance | Import + duty | Risk transfers |
|---|
Seller = the seller is responsible Buyer = the buyer is responsible
What are Incoterms 2020?
Incoterms (International Commercial Terms) are a set of 11 standardized rules published by the International Chamber of Commerce that define who, between buyer and seller, is responsible for transport, insurance, export and import clearance, and at what point risk for the goods transfers. The current version is Incoterms 2020. Seven rules work for any transport mode (EXW, FCA, CPT, CIP, DAP, DPU, DDP) and four are for sea or inland waterway transport only (FAS, FOB, CFR, CIF).
What changed in Incoterms 2020?
- DAT (Delivered at Terminal) was renamed DPU (Delivered at Place Unloaded), the only rule where the seller unloads at destination.
- CIP now requires the seller to buy a higher level of insurance (Institute Cargo Clauses A, all-risk). CIF still requires only the minimum (Clause C).
- FCA adds an option for an on-board bill of lading notation, which helps when a letter of credit is involved.
- FCA, DAP, DPU and DDP now account for buyer or seller moving goods with their own transport rather than a third-party carrier.
- Security-related obligations and a clearer list of costs were added to each rule.
CIF vs CIP, and the risk-vs-cost trap
Under CFR, CIF, CPT and CIP the seller pays freight to the destination, but risk transfers much earlier, when the goods are handed to the carrier or loaded on board at origin. So you can be paying for freight on cargo that is already at your risk. CIF (sea only) requires only minimum insurance; CIP (any mode) requires all-risk cover, which is why CIP is the safer choice for containerized goods.