Incoterms® 2020 are 11 trade terms published by the International Chamber of Commerce (ICC) that define who bears transport costs, risk and formalities under a sales contract. Seven apply to any mode of transport, four only to sea and inland waterway transport.
Any mode of transport (7): EXW, FCA, CPT, CIP, DAP, DPU, DDP. Sea and inland waterway (4): FAS, FOB, CFR, CIF.
What Incoterms do not cover: transfer of ownership, payment terms and price. These must be set out in the sales contract.
Why it matters for carriers: the term decides who books and pays for transport – the buyer under EXW, the seller under DAP and DDP. That determines who your customer is and with whom you negotiate the freight rate.