{"id":9775,"date":"2025-12-16T14:48:59","date_gmt":"2025-12-16T14:48:59","guid":{"rendered":"https:\/\/maletschek.gr\/?p=9775"},"modified":"2025-12-16T14:52:43","modified_gmt":"2025-12-16T14:52:43","slug":"incoterms-2020-what-incoterms-are-and-how-they-are-directly-connected-to-cargo-insurance","status":"publish","type":"post","link":"https:\/\/maletschek.gr\/en\/incoterms-2020-what-incoterms-are-and-how-they-are-directly-connected-to-cargo-insurance\/","title":{"rendered":"Incoterms 2020: What Incoterms are and how they are directly connected to cargo insurance."},"content":{"rendered":"<p>In a globalized environment where cargo transport is a critical part of the supply chain, clarity in delivery terms is essential. <strong>Incoterms (International Commercial Terms)<\/strong>, published by the International Chamber of Commerce (ICC), were created to precisely define the responsibilities, costs, and risks that sellers and buyers assume in international commercial transactions.<\/p>\n<p>Choosing the right Incoterm affects not only the flow of transportation but also risk coverage, insurance requirements, and the actual cost of a shipment.<\/p>\n<p><strong>What Are Incoterms?<\/strong><\/p>\n<p>They are a set of <strong>11 internationally recognized rules<\/strong> that define:<\/p>\n<ul>\n<li>Who is responsible for transportation costs<\/li>\n<li>Who assumes the risk of damage or loss<\/li>\n<li>Who handles customs procedures<\/li>\n<li>Where and when delivery takes place<\/li>\n<\/ul>\n<p>Incoterms are <strong>not a contract<\/strong> on their own, but they supplement the sales agreement by clarifying critical aspects and helping to avoid misunderstandings and legal disputes.<\/p>\n<p><strong><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-large wp-image-9769\" src=\"https:\/\/maletschek.gr\/wp-content\/uploads\/2025\/12\/1579267623429-1024x512.jpg\" alt=\"\" width=\"960\" height=\"480\" srcset=\"https:\/\/maletschek.gr\/wp-content\/uploads\/2025\/12\/1579267623429-1024x512.jpg 1024w, https:\/\/maletschek.gr\/wp-content\/uploads\/2025\/12\/1579267623429-300x150.jpg 300w, https:\/\/maletschek.gr\/wp-content\/uploads\/2025\/12\/1579267623429-768x384.jpg 768w, https:\/\/maletschek.gr\/wp-content\/uploads\/2025\/12\/1579267623429.jpg 1200w\" sizes=\"(max-width: 960px) 100vw, 960px\" \/><br \/>\nThe 11 Incoterms Explained Simply and Practically<\/strong><\/p>\n<ol>\n<li><strong>EXW \u2013 Ex Works<\/strong><br \/>\nThe seller simply makes the goods available at their premises. The buyer assumes all transportation, costs, and risks.<\/li>\n<li><strong>FCA \u2013 Free Carrier<\/strong><br \/>\nThe seller delivers the goods to the carrier chosen by the buyer.<\/li>\n<li><strong>FAS \u2013 Free Alongside Ship<\/strong><br \/>\nThe seller places the goods next to the vessel at the port of shipment. The buyer handles loading and transport.<\/li>\n<li><strong>FOB \u2013 Free On Board<\/strong><br \/>\nThe seller loads the goods onto the ship. The buyer pays the freight and arranges insurance.<\/li>\n<li><strong>CFR \u2013 Cost and Freight<\/strong><br \/>\nThe seller pays the freight to the destination port, but risk transfers to the buyer once the goods are loaded onboard.<\/li>\n<li><strong>CIF \u2013 Cost, Insurance and Freight<\/strong><br \/>\nSame as CFR, but the seller also pays for insurance. One of the most widely used terms in maritime trade.<\/li>\n<li><strong>CPT \u2013 Carriage Paid To<\/strong><br \/>\nThe seller pays transport to the agreed destination, but risk transfers to the buyer when the goods are handed over to the carrier.<\/li>\n<li><strong>CIP \u2013 Carriage and Insurance Paid To<\/strong><br \/>\nSame as CPT, with the added obligation for the seller to pay for insurance.<\/li>\n<li><strong>DAP \u2013 Delivered At Place<\/strong><br \/>\nThe seller delivers the goods ready for unloading at the place designated by the buyer.<\/li>\n<li><strong>DPU \u2013 Delivered at Place Unloaded<\/strong><br \/>\nThe seller is also responsible for unloading the goods at the destination.<\/li>\n<li><strong>DDP \u2013 Delivered Duty Paid<\/strong><br \/>\nThe seller assumes all costs, risks, and import duties up to the buyer\u2019s premises. The most \u201cseller-heavy\u201d term.<\/li>\n<\/ol>\n<p><strong><img decoding=\"async\" class=\"alignnone size-full wp-image-9772\" src=\"https:\/\/maletschek.gr\/wp-content\/uploads\/2025\/12\/INCOTERMS-2020-C-SIMPLE-CHART-1024x302-1.jpg\" alt=\"\" width=\"1024\" height=\"302\" srcset=\"https:\/\/maletschek.gr\/wp-content\/uploads\/2025\/12\/INCOTERMS-2020-C-SIMPLE-CHART-1024x302-1.jpg 1024w, https:\/\/maletschek.gr\/wp-content\/uploads\/2025\/12\/INCOTERMS-2020-C-SIMPLE-CHART-1024x302-1-300x88.jpg 300w, https:\/\/maletschek.gr\/wp-content\/uploads\/2025\/12\/INCOTERMS-2020-C-SIMPLE-CHART-1024x302-1-768x227.jpg 768w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><br \/>\nWhy Are Incoterms Directly Linked to Cargo Insurance?<\/strong><\/p>\n<p>The chosen Incoterm determines <strong>when the risk of damage or loss transfers<\/strong> from the seller to the buyer.<br \/>\nThis means:<\/p>\n<ul>\n<li>Under certain terms (e.g., FOB, CFR, EXW), the <strong>buyer<\/strong> must arrange their own insurance.<\/li>\n<li>Under others (e.g., CIF, CIP), the <strong>seller<\/strong> is required to provide insurance, but often with <strong>minimum coverage<\/strong>, which may not adequately protect the buyer.<\/li>\n<li>An incorrect Incoterm choice can leave part of the shipment <strong>uninsured<\/strong> during the transport process.<\/li>\n<\/ul>\n<p><strong>Conclusion<\/strong><\/p>\n<p>Incoterms form the foundation of safe and efficient international trade transactions. Understanding them and using them correctly helps reduce costs, prevent risks, and ensure smooth transportation.<\/p>\n<p>For specialized advice on Incoterms and the appropriate cargo insurance coverage, our team is always at your disposal.<\/p>\n<p><em>\u00a0<\/em><em>\u00a0<\/em><\/p>\n<p><em>\u00a0<\/em><\/p>\n<p><em>The information, assessments, and statements contained in this document are provided for informational purposes only. While our company strives to ensure that the content is accurate and up to date, no warranties, express or implied, are given regarding the completeness, accuracy, or suitability of the information.<\/em><\/p>\n<p><em>\u00a0<\/em><\/p>\n<p><em>Any evaluations and conclusions are presented impartially and do not constitute legal, technical, or financial advice. The company accepts no liability for any direct or indirect damages that may result from the use of this information.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In a globalized environment where cargo transport is a critical part of the supply chain, clarity in delivery terms is essential. Incoterms (International Commercial Terms), published by the International Chamber of Commerce (ICC), were created to precisely define the responsibilities, costs, and risks that sellers and buyers assume in international commercial transactions. Choosing the right&#8230;<\/p>\n","protected":false},"author":2,"featured_media":9769,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[93],"tags":[118,119,122,133,123,125,126],"class_list":{"0":"post-9775","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","6":"hentry","7":"category-articles","8":"tag-cmr-en","9":"tag-cmr-contract-en","10":"tag-full-kasko-en","11":"tag-maletschek-en","12":"tag-asfaleia-eborevmaton-en","13":"tag-exeidikevmenes-asfaliseis-en","14":"tag-efodiastiki-alysida-en","15":"nt-post-class","16":"","17":"masonry-item","18":"col-lg-4","22":"excerpt-none"},"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/maletschek.gr\/en\/wp-json\/wp\/v2\/posts\/9775","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/maletschek.gr\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/maletschek.gr\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/maletschek.gr\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/maletschek.gr\/en\/wp-json\/wp\/v2\/comments?post=9775"}],"version-history":[{"count":0,"href":"https:\/\/maletschek.gr\/en\/wp-json\/wp\/v2\/posts\/9775\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/maletschek.gr\/en\/wp-json\/wp\/v2\/media\/9769"}],"wp:attachment":[{"href":"https:\/\/maletschek.gr\/en\/wp-json\/wp\/v2\/media?parent=9775"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/maletschek.gr\/en\/wp-json\/wp\/v2\/categories?post=9775"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/maletschek.gr\/en\/wp-json\/wp\/v2\/tags?post=9775"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}