This table is for anyone negotiating terms with a foreign supplier, reviewing an existing contract, or checking whether the Incoterm they're using today is still the right one. No prior foreign trade knowledge required: each column explains one specific responsibility. If you need the full guide with examples by operation type, it's in the main Incoterms 2026 article.
Incoterms are 11 international trade terms that define, precisely, who pays the transport, who buys the insurance, and at what point in the logistics chain risk passes from seller to buyer. The version currently in force is Incoterms 2020, published by the International Chamber of Commerce (ICC). This table applies to all ongoing operations.
Table of the 11 Incoterms: transport mode and responsibilities
| Incoterm | Full Name | Mode | Freight Paid By | Insurance Bought By | Delivery | Risk Passes to Buyer |
|---|---|---|---|---|---|---|
| EXW | Ex Works | All | Buyer | Buyer | Seller's premises | At seller's premises |
| FCA | Free Carrier | All | Buyer | Buyer | Designated point | On handover to carrier |
| FAS | Free Alongside Ship | Ocean only | Buyer | Buyer | Alongside vessel | Alongside vessel at origin |
| FOB | Free On Board | Ocean only | Buyer | Buyer | On board vessel | On board vessel at origin |
| CPT | Carriage Paid To | All | Seller | Buyer | Carrier at origin | On handover to carrier |
| CIP | Carriage and Insurance Paid To | All | Seller | Seller (broad) | Carrier at origin | On handover to carrier |
| CFR | Cost and Freight | Ocean only | Seller | Buyer | Destination port | On board vessel at origin |
| CIF | Cost, Insurance and Freight | Ocean only | Seller | Seller (minimum) | Destination port | On board vessel at origin |
| DAP | Delivered at Place | All | Seller | Buyer | Agreed destination | At destination (not cleared) |
| DPU | Delivered at Place Unloaded | All | Seller | Buyer | Destination, unloaded | Once unloaded at destination |
| DDP | Delivered Duty Paid | All | Seller | Seller | Destination | At destination (already cleared) |
How to read the table
Transport mode: FAS, FOB, CFR, and CIF apply only to ocean or inland waterway shipments where the cargo can be physically counted on board. The other 7 Incoterms work with any mode: ground, air, or ocean in a container.
Risk vs. cost: under CIF and CFR the seller pays the freight to the destination port, but risk already passed to the buyer once the goods were on board at origin. This confuses many importers: if the cargo is lost in transit, the risk is yours even though the seller paid the freight.
EXW vs. DDP: these are the two extremes. With EXW the buyer takes on everything from the moment they pick up the goods at the seller's premises. With DDP the seller takes on everything: freight, insurance, and even customs clearance at destination.
CIP vs. CIF: both include insurance paid by the seller, but CIP requires broad coverage (Institute Cargo Clauses, clause A), while CIF only requires minimum coverage (clause C). For high-value goods, CIP gives you better protection.
Want to go deeper?
The table summarizes the key points, but choosing the right Incoterm for your operation depends on the type of goods, the origin, the volume, and your relationship with the supplier. The full guide explains each term with practical examples for imports into Mexico.
Need to coordinate an import?
As a freight forwarder in Mexico, we advise you on the best Incoterm and handle the entire logistics operation.
Get a Quote