The ICC ( International Chamber of Commerce) has clasified this Incoterms depending on the mode of transport used by companies, It can be classified into:
EXW: Ex Works (factory)
FCA: Free Carrier (free carrier)
CPT: Carrier paid to (transport pays up to)
CIP: Carrier and insurance paid to (transport and insurance paid to)
DAP: Delivered at place
DPU: Delivered at place unloaded
DDP: Delivered duty paid
The appropriate transport to apply these incoterms are air or surface (excluded sea), even when several types of transport are used-MULTIMODAL.
FAS: Free alongside ship
FOB: Free on Board
CFR: Cost and Freight (CIF)
CIF: Cost, insurance and freight
These Incoterms will be the ones that need to be used when the point of delivery and the place to which it is transported are ports.
INCOTERMS stands for "International Commercial Terms” , used by the international sales parties (buyer and seller) in order to make the contract obligations of the parties clear.
Incoterms meaning can be reduced to the following:
Cost sharing (the seller will know exactly how far will he face the costs of transportation, which will allow the purchaser include the expenses in the price offered and then to compare them with other offers), transmission risk (the buyer will know when transport risks up to him might be, meaning, during transport the goods may be damaged, so, for those damages, who should be held responsable? with this incoterm the responsibility of each party shall be provided.
The destination where the goods will be delivered (with this incoterm the place where the seller agrees to leave the goods and therefore the place where the seller must collect the goods will be told accurately).
These Incoterms are meant to help when writing the contract, so that the parties can understand, considering that each country has its laws and customs and could not coincide with those of other countries. ICC created these Incoterms created so that the parties could bring them into their contracts. The parties are free to apply or not, and those who are more suitable depending on each contract.