Shipping options for trade, wholesale and bulk orders
Wholesale, Freight & Business-to-Business Orders
Commercial Shipping Terms & Freight Options
Selected wholesale, bulk, custom, and commercial orders may be quoted using an Incoterms® 2020 rule or another written freight arrangement. The applicable term, named place or port, transport mode, included services, charges, and transfer of risk must be confirmed in the quotation or sales agreement.
11 Rules Incoterms 2020 commercial terms
Named Location Place or port must be stated precisely
Quote Specific Not every term is available for every order
LCL Is Separate Freight method, not an Incoterms rule
1
Before Selecting a Commercial Shipping Term
Incoterms define selected delivery responsibilities, costs, customs obligations, and risk transfer between seller and buyer.
Written Confirmation Required
A term applies only when it is expressly included in an accepted quotation, invoice, purchase order, or sales agreement.
Named Place or Port Required
The quotation should state the exact terminal, warehouse, address, port, or other agreed delivery point.
Incoterms Do Not Replace the Contract
Product specifications, payment terms, title, remedies, inspection rights, and other transaction terms must still be addressed separately.
The summaries below are practical overviews only. The accepted commercial documents and the complete Incoterms® 2020 rule govern the transaction.
2
Rules for Any Mode of Transport
These seven terms may be used for road, rail, air, courier, multimodal, container, sea, or inland-waterway transport.
| Term | Delivery & Risk Transfer | Seller Responsibilities | Buyer Responsibilities |
|---|---|---|---|
|
EXW Ex Works Any Mode |
Goods are placed at the buyer’s disposal at the named location, normally not loaded onto the collecting vehicle. | Prepare and make the goods available as stated in the agreement. | Arrange loading, transport, export and import formalities, insurance if desired, duties, taxes, and onward delivery. |
|
FCA Free Carrier Any Mode |
Risk transfers when the goods are delivered to the buyer-nominated carrier or person at the named place. | Complete export formalities. Load the collecting vehicle when delivery is at the seller’s premises; otherwise deliver ready for unloading at the named place. | Nominate the carrier and arrange main transport, import clearance, duties, taxes, and destination delivery unless otherwise agreed. |
|
CPT Carriage Paid To Any Mode |
Risk transfers when the goods are handed to the first carrier, even though the seller pays carriage to the named destination. | Arrange and pay carriage to the named destination and complete export formalities. | Bear transit risk after delivery to the first carrier and handle import clearance, duties, taxes, and destination requirements. |
|
CIP Carriage and Insurance Paid To Any Mode |
Risk transfers when the goods are handed to the first carrier, while carriage and agreed cargo insurance are arranged to the named destination. | Arrange export clearance, carriage, and the insurance required by the applicable rule or agreed contract. | Bear transit risk after delivery to the first carrier, review insurance limits, and handle import clearance, duties, and taxes. |
|
DAP Delivered at Place Any Mode |
Risk transfers when the goods arrive at the named destination ready for unloading. | Arrange transport and export formalities to the named destination. | Unload the goods and complete import clearance, duties, taxes, permits, and other destination formalities. |
|
DPU Delivered at Place Unloaded Any Mode |
Risk transfers after the goods have been unloaded at the named destination. | Arrange transport, export formalities, and unloading at the named destination. | Complete import clearance, duties, taxes, permits, and onward handling after delivery. |
|
DDP Delivered Duty Paid Any Mode |
Risk transfers when the goods are delivered at the named destination ready for unloading and cleared for import. | Arrange transport, export and import formalities, and agreed duties and taxes, subject to legal and operational ability to act as importer. | Receive and unload the goods and provide required cooperation or information. |
3
Rules for Sea & Inland-Waterway Transport
These four rules are intended for port-to-port sea or inland-waterway shipments.
| Term | Delivery & Risk Transfer | Seller Responsibilities | Buyer Responsibilities |
|---|---|---|---|
|
FAS Free Alongside Ship Sea Only |
Risk transfers when the goods are placed alongside the buyer-nominated vessel at the named port of shipment. | Deliver alongside the vessel and complete export formalities. | Nominate the vessel and arrange loading, ocean freight, insurance if desired, import clearance, duties, and taxes. |
|
FOB Free On Board Sea Only |
Risk transfers when the goods are placed on board the buyer-nominated vessel at the named port of shipment. | Complete export formalities and deliver the goods on board the vessel. | Nominate the vessel and arrange ocean freight, insurance if desired, import clearance, duties, and destination handling. |
|
CFR Cost and Freight Sea Only |
Risk transfers when the goods are on board at the port of shipment, although the seller pays freight to the named destination port. | Complete export formalities and arrange ocean freight to the named destination port. | Bear risk after loading on board, arrange insurance if desired, and handle import clearance, duties, discharge, and onward delivery. |
|
CIF Cost, Insurance and Freight Sea Only |
Risk transfers when the goods are on board at the port of shipment, while freight and required marine insurance are arranged to the named destination port. | Complete export formalities and arrange ocean freight and the insurance required by the applicable rule or contract. | Bear risk after loading on board, review insurance limits, and handle import clearance, duties, discharge, and onward delivery. |
For many containerized or multimodal shipments, an any-mode term such as FCA, CPT, or CIP may be more appropriate than FOB, CFR, or CIF. The correct choice depends on where delivery to the carrier actually occurs.
4
LCL & Other Freight Methods
Freight methods describe how cargo moves; they do not replace the commercial delivery term.
LCL — Less than Container Load
Cargo shares a container with other shipments. It can suit smaller ocean-freight orders but may involve consolidation, deconsolidation, terminal, and destination charges.
FCL — Full Container Load
One buyer normally uses the container. This may suit larger orders but still requires agreement on loading, container use, port costs, delivery, and return obligations.
Air, Courier & Road Freight
Air cargo, express courier, truck, rail, and multimodal services may be quoted according to size, weight, urgency, destination, and product restrictions.
5
Choosing an Appropriate Option
Selection should reflect the order, route, commercial experience, and ability of each party to perform its duties.
1
Confirm the Transport Mode
Determine whether the shipment is courier, air, road, rail, multimodal, containerized ocean freight, or non-containerized sea freight.
2
Identify the Exact Delivery Point
State the warehouse, terminal, port, airport, commercial address, or other agreed location.
3
Assign Customs Responsibilities
Confirm who can legally and practically act as exporter, importer, and payer of duties, taxes, brokerage, permits, and clearance costs.
4
Review Risk & Insurance
Confirm when risk transfers, who arranges insurance, the insured value, exclusions, claims procedure, and any deductible.
5
Approve the Complete Quote
Review product cost, freight, terminal charges, accessorial fees, customs costs, insurance, storage, destination fees, and delivery requirements before payment.
6
Availability & Quotation Conditions
Commercial freight services are assessed individually.
Not Every Term Is Offered
Availability depends on the supplier, product, warehouse, export country, destination, shipment value, order size, carrier, and local import rules.
DDP Requires Special Review
DDP may be unavailable where the seller cannot legally or operationally complete import clearance, register locally, or pay destination charges.
Charges Can Change
Freight, fuel, terminal, storage, remote-area, customs, insurance, and accessorial charges may change before booking or when shipment information changes.
Customer Freight Forwarders
Buyer-appointed forwarders may be accepted for approved orders. Pickup instructions, authority, deadlines, documentation, and responsibility must be confirmed in writing.
Do not arrange a carrier, vessel, pickup, export filing, or freight booking until the order, payment requirements, named location, documentation, and commercial shipping terms have been approved in writing.
7
Additional Commercial Shipping Conditions
These conditions address important matters that are not fully determined by an Incoterms rule alone.
Ownership, Payment & Risk Are Separate
The transfer of shipping risk does not necessarily determine when legal ownership of the goods transfers or when payment becomes due. Ownership, deposits, final payment, financing, and payment deadlines must be stated separately in the quotation, invoice, purchase order, or sales agreement.
Quote Validity & Freight Recalculation
Commercial freight quotations remain valid only for the period stated in the quotation. Rates may be recalculated when there is a change in quantity, packaging, dimensions, weight, destination, transport mode, delivery access, carrier availability, fuel surcharge, exchange rate, or shipment timing.
Accurate Measurements & Shipment Information
The buyer must review all shipment information before approving the quotation. Additional charges may apply when the final packed dimensions, volumetric weight, gross weight, quantity, product classification, or delivery requirements differ from the information originally supplied.
Packaging, Pallets & Export Preparation
Packaging may be selected according to the product, transport mode, destination, handling requirements, and carrier standards. Crating, pallets, fumigation, reinforcement, moisture protection, hazardous-goods preparation, or other specialized packaging may require an additional quotation.
Terminal, Storage & Accessorial Charges
Unless expressly included in writing, the quotation may exclude destination terminal charges, demurrage, detention, storage, examination fees, waiting time, redelivery, lift-gate service, residential delivery, limited-access delivery, appointment service, inside delivery, remote-area surcharges, and similar carrier charges.
Partial & Split Shipments
Large or multi-product orders may ship in separate parcels, pallets, containers, or freight movements. Each shipment may have its own carrier, tracking information, customs documents, delivery schedule, and associated charges.
Buyer-Appointed Carrier or Freight Forwarder
When the buyer appoints a carrier or freight forwarder, the buyer must provide complete booking instructions, contact information, reference numbers, pickup requirements, receiving hours, and documentation deadlines.
Customs Documentation & Product Classification
Product descriptions, declared values, tariff classifications, country-of-origin information, permits, certificates, importer identification, and other customs documents may be required. The importer remains responsible for confirming that the goods may lawfully enter the destination.
Inspection, Damage & Freight Claims
The buyer or receiving party should inspect the shipment promptly upon arrival. Visible shortages or damage should be recorded on the carrier’s delivery document before signing whenever possible.
Failed Delivery, Refusal & Abandonment
Additional costs may arise when delivery cannot be completed because of an incorrect address, unavailable recipient, restricted access, refused shipment, unpaid import charges, missing documentation, or failure to complete customs clearance.
Delays Beyond Reasonable Control
Estimated freight and delivery dates are not guaranteed appointments. Delays may result from customs review, carrier capacity, weather, port congestion, labour disruption, government action, security restrictions, route changes, natural events, or other circumstances outside the reasonable control of the parties.
Freight Booking Confirmation
No freight booking is confirmed until the order, payment requirements, shipping term, named location, carrier arrangements, and required documents have been accepted in writing.
Charges caused by delayed customs clearance, missed pickup, refused delivery, unavailable receiving facilities, incorrect shipment information, or incomplete buyer instructions may remain the buyer’s responsibility. Any replacement, refund, reshipment, insurance claim, or other remedy depends on the accepted quotation, carrier findings, applicable policies, and the circumstances of the shipment.
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Frequently Asked Questions
Common questions about bulk and commercial freight.
Can I select an Incoterms rule during normal checkout?
Usually not. Standard retail checkout uses the shipping and customs terms displayed for that order. Commercial terms require a written quotation.
Is LCL an Incoterms rule?
No. LCL describes shared-container ocean freight. The sales agreement must still identify the applicable delivery term and named place or port.
Does “carriage paid” mean the seller keeps the transit risk?
Not under CPT or CIP. The seller may pay carriage to the named destination while risk transfers earlier when the goods are delivered to the first carrier.
Does DDP always include every possible destination charge?
The written quotation must identify what is included. Charges caused by incorrect buyer information, unusual inspections, storage, failed delivery, prohibited imports, or post-booking changes may require separate treatment.
Can I use my own freight forwarder?
Possibly. Provide the forwarder’s company name, contact details, pickup address, requested term, destination, and booking instructions for review.
Request a Commercial Freight Quote
Send the product links, specifications, quantities, destination, delivery address or port, preferred transport mode, requested timing, and any buyer-appointed forwarder details.