Freight glossary
Incoterms
Standardized trade terms (EXW, FOB, CIF, DDP…) that define who pays for and who is responsible for each leg of a shipment.
Incoterms are a set of internationally recognized rules published by the ICC. They spell out where the seller's responsibility ends and the buyer's begins — who arranges transport, who pays freight, who handles export and import clearance, and where risk transfers.
Common ones: EXW (buyer does everything from the seller's door), FOB (seller loads onto the vessel, buyer takes over from there), CIF (seller covers cost, insurance and freight to the destination port), and DDP (seller delivers fully cleared to the buyer's door).
Why it matters
The Incoterm decides your true cost and risk. 'Cheap' EXW pricing can cost more once you add the freight and clearance the seller didn't include.
Example
Buying FOB Shenzhen, you (or Rumbo) arrange ocean freight, insurance and destination clearance from the port onward.
Related terms
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