Container types and sizes






Types of transport:

  • CIP – Carriage and Insurance Paid
  • CPT – Carriage Paid To
  • DAP – Delivered At Place
  • DAT – Delivered At Terminal
  • DDP – Delivered Duty Paid
  • EXW – Ex Works
  • FCA – Free Carrier

Sea and inland waterway transport:

  • CFR – Cost and Freight
  • CIF – Cost, Insurance and Freight
  • FAS – Free Alongside Ship
  • FOB – Free On Board
  • EXW (specified place of delivery)

EXW (delivery location is designated)

The seller delivers products at their own facility/factory/warehouse and etc. This term EXW means that the seller does not need to then load items onto a truck or ship, and the remainder of the shipment is the responsibility of the buyer (for example customs duty and overseas shipment). EXW is therefore more favourable to the seller as they do not need to worry about the freight once it has left their territory. However it is vital to note that once the seller has informed the buyer that the goods for the contract are identified and set aside, the delivery has been made, the buyer bears the risk from that moment and is obliged to pay, even though the goods are still in the possession and physical control of the seller. If both parties come to an agreement where the seller is responsible for cargo loading to specialised transport and take the responsibility together with all the costs of cargo loading, then it must be clearly formulated in the selling agreement.

FCA (delivery location is designated)

This term matches CIF, except it applies for combined and container transport. The seller pays for freight and insurance up to the delivery location, but then the seller is not taken accountable when the products are delivered to the first carrier.

CPT (specified location)

The seller pays for the transportation of the goods. The responsibility passes to the buyer when the goods are handed over to the first carrier at the place of importation.

CIP (specified location)

Corresponds to the term CIF, only applicable to container transport and combined transport. The seller pays for the carriage and insurance to the specified place, but he is no longer liable when the goods are handed over to the first carrier.

DAT (terminal at sea port or place of destination)

The seller pays for shipment until products reach the terminal, except for import documentation costs and takes all responsibility until the products are unloaded at the terminal.

DAP (location is designated)

The seller covers the costs of shipment until products reach the designated location, except the costs for import documentation and takes all responsibility until the products are prepared to be unloaded by the buyer or client.

DDP (location is designated)

The seller is responsible for the shipment of products to a buyer‘s designated country and covers the costs of shipment of products to a designated location, as well as costs for import duties and taxes. The buyer is responsible for unloading. This term indicates that the highest risk is taken by the seller and the buyer takes minimum risk.

FAS (port of shipment)

The seller has to arrange the goods next to a vessel at the designated port. This means that the seller has to make sure that the export documents of goods are prepared. This term is often applied for heavy or large-capacity goods.

FOB (port of shipment)

The seller is obligued to load the goods to the buyer‘s designated vessel. When the goods are loaded into the vessel, both parties take equal responsibility for the cargo. Also, the seller has to prepare the necessary export documents.

CFR (port of destination)

The seller pays the costs of shipment of goods to the named port of destination. When the goods are delivered onboard the ship by the seller, the risk passes from seller to buyer. Good insurance is not included. The buyer is responsible for covering additional transport costs from the port of destination including import clearance and duties.

CIF (port of destination)

This term is associated with CFR, except the seller is obligued to pay for insurance. Only applied to sea freight.