shipping terms

There are totally 11 shipping terms (Incoterms), which define the various responsibilities, costs, and risks that are borne by the buyer and seller when goods are traded internationally. I am not going to go through all 11 but I will give a brief overview of the most common: EXW = Ex-Works: This is where the seller of the goods is not involved at all with the transportation costs or risks (i.e. damage in transit). They simply make the goods available to the buyer for collection at their site. It is then the buyer’s responsibility to collect the goods from the seller and get them back to the Europe, the buyer also bears all the risks from the moment the goods are collected so insurance is advisable.  FOB = Free On Board: This is where the seller is responsible for the costs and risks of getting the goods on board the ship. Once…