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Incoterms 2020 for freight professionals

What's new in Incoterms® 2020? What will they change in the way you organize your international transport? Incoterms decoded for freight professionals by a specialist

Hélène Plaquet, ICC accredited Incoterms® 2020 trainer, MATHEZ FORMATION consultant and Customs Director at MATHEZ FREIGHT, gives us her first operational analysis:

The new version of Incoterms® 2020, which will come into force on January 1, 2020, is more precise than its forerunner and has been technically upgraded , with comparison tools for professionals.

Print this free Incoterms® 2020 pdf

and control at a glance your risks and responsibilities for EXW, FCA, CPT, CIP, DAP, DPU, DDP, FAS, FOB, CFR & CIF

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Incoterm 2020

Their number remains stable – 11 Incoterms®, but some are modified:

  • The DAT (Delivered At Terminal) becomes DPU (Delivered at Place Unloaded) . which was more restrictive, is replaced by “place unloaded ” which includes all possible delivery sites (worksite, airport, buyer’s premises etc.). DPU also increases commitment and risks on behalf of the seller, who will be responsible for unloading in the designated destination.

DPU is particularly suited to large projects, yards, onsite delivery etc. However be aware it will often require preliminary analysis of logistics.

  • A variant of the FCA is proposed which is more suited to documentary credits. The seller and buyer can now agree that the buyer will give instructions to their shipping agent to supply the seller with proof of loading.
  • CIP and CIF acknowledge mandatory levels of specific insurance in Incoterms® 2020. You will now need “fully comprehensive” cover for CIP and “minimal cover” for CIF.
  • Groups « E », « F » and « D » can now accommodate own transport. In the 2020 version, these incoterms enable sellers and buyers to use their own lorries, without using a service provider.
  • Reminder: the maritime Incoterms (FAS – FOB – CFR – CIF) must be used for the transport of goods carried in bulk or conventional, and not for containerized goods.
  • The ICC is reinforcing its recommendation not to use the EXW incoterm for international exchanges and to keep it for domestic shipping.
    See our article on this subject: “Incoterms: why avoid Ex Works (EXW) export?”
Hélène Plaquet

There’s no great revolution in Incoterms® 2020, but there are subtle differences which will require enhanced technical skills on behalf of freight professionals to avoid unfortunate surprises and to ensure they understand the risks and make the best choices. Do not hesitate to get in touch for specific advice.

Hélène Plaquet, MATHEZ FREIGHT Nice
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