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     Common Shipping Terminology

• EXW - Ex Works (named place) The seller fulfills his obligation to deliver when he has made the goods available at his premises (i.e. works, factory, warehouse) to the buyer.
• FDC - Free Carrier (named place) The seller satisfies his obligation to deliver when he has handed over the goods, cleared for export, into the charge of the carrier named by the buyer at the named place or point. If the buyer instructs the seller to deliver the cargo to a person e.g. a freight forwarder who is not a "carrier", the seller is deemed to have completed his obligation to deliver the goods when they are in that person’s custody.
• FAS - Free Alongside Ship (named port of shipment) The seller satisfies his obligation to deliver the goods when the goods are placed alongside the vessel on the quay or lighters (barges) at the named port of shipment.
• FOB- Freight on Board (named port of shipment) Means the seller completes his obligation to deliver when the goods pass over the ship’s rail at the named port of shipment.
• CFR - Cost & Freight (named port of destination) The seller must pay the cost and freight necessary to bring the goods to the named port of destination.
• CIF - Cost, Insurance & Freight (named port of destination) The seller has the same obligations as under CFR, but must also procure marine insurance against the buyer’s risk of loss of, or damage to the goods during carriage.
• CPT - Carriage Paid To (named port of destination) The seller pays the freight for carriage of the goods to the named destination. The risk of loss of, or damage to the goods, as well as any additional costs due to the events occurring after the time the goods have been delivered into the custody of the carrier. In this context, "carrier" means any person who, in a contract of carriage, undertakes to perform or to procure the performance of carriage by rail, road, sea, air, inland waterway, or by a combination of such modes. If subsequent carriers are used for the carriage to the agreed destination, the risk passes when the goods have been delivered to the first carrier. The CPT team requires the seller to clear the goods for export. The term applies to any mode of transport, including multi-modal transport.
• CIP - Carriage & Insurance Paid To (named port of destination) The seller has the same obligations as under CPT, but must also procure cargo insurance against the buyer’s risk of loss of, or damage to the goods during the carriage. The seller contracts for insurance and pays the insurance premium, although he is required to obtain only minimum coverage. The seller must clear the goods for export.
• DAF - Delivered at Frontier (named place) The seller fulfills his obligation to deliver when the goods are available, cleared for export, at the named point and place at the frontier, but before the customs border of the adjoining country. The term "frontier" covers any frontier including that of the country of export. Therefore, it is vital that the frontier in question be defined precisely by naming the point and place in the term. The term applies primarily to the goods carried by rail, or road, but may be used for any mode of transport.
• DES - Delivered EX Ship (named port of destination) The seller satisfies his obligation to deliver when the goods are available to the buyer on board the ship uncleared for import at the named port of destination.
• DEQ - Delivered EX Quay (named port of destination) The seller fulfills his obligation to deliver when the goods are available to the buyer on the quay (wharf) at the named port of destination cleared for importation.
• DDU - Delivered Duty Unpaid (named place of destination) The seller fulfills his obligation to deliver when the goods are available at the named place in the country of importation.
• DDP - Delivered Duty Paid (named place of destination) The seller fulfills his obligation to deliver when the goods are available at the named place in the country of importation. (named place of destination) The seller fulfills his obligation to deliver when the goods are available at the named place in the country of importation. (named place of destination) The seller fulfills his obligation to deliver when the goods are available at the named place in the country of importation.