INCOTERMS - MARITIME TRANSPORT

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Incoterms ("INternational COmmercial TERMS") are a group of commercial terms (three letters each) used in international transactions to clarify the costs and determine the commercial clauses included in a sales contract.

The following INCOTERMS are only used when transport is by ship, either by sea or inland waterway.

CFR:

It comes from Cost and Freight Paid (Cost and Freight Paid). See used when the seller takes charge of the goods until they are delivered at the specified port. However, the risk associated with the goods is transferred to the buyer when the ship arrives in the country of destination. It is often used for general cargoes, transported in containers.

VAT NUMBER:

VIene de Cost, Insurance and Freight (Cost, Insurance and Freight). Its use is very similar to that of CFR, with the exception that the insurance is at the seller's expense until delivery at the agreed port.

FAS:

It comes from Free Alongside Ship (Free alongside the ship). Used when the the seller deposits the goods at the port, next to the ship that will transport them, at his own expense up to that point.. This term is often used in the marine transport of bulk and bulky goods. These usually require specialised delivery to specific terminals in ports.

FOB:

It comes from Free On Board (Free On Board). Used when the seller delivers the goods on the vessel which the buyer has designated for carriageand should be used only for general cargoes and not for bulk cargoes.