Incoterms 2020, the set of international commercial rules issued by the ICC, clearly defines the responsibilities, costs, and risks between buyers and sellers. However, in reality, many businesses still apply them incorrectly.

A common mistake is using the FOB (Free on Board) term for containerized shipping, while according to Incoterms 2020 standards, the FCA (Free Carrier) term should be used to protect rights and risks from the time the container is delivered at the CY yard.

This article will provide detailed instructions on how to choose the most suitable delivery term for each mode of sea, air, and multimodal transport.