The 2010 incoterms of the ICC (International Chamber of Commerce) came into effect on January 1, 2011 and replace the former incoterms 2000.
The following is a summary of changes introduced with the new Incoterms 2010.
With the new Incoterms® 2010 the International Chamber of Commerce (ICC) has made an effort to improve their utilization. We can also observe in this new edition an important simplification effort. Four Incoterms have been eliminated and two new ones have been created instead.
Let us see these changes in the table below, where we can see in bold the Incoterms that have disappeared. There were thirteen Incoterms 2000, among which the International Chamber of Commerce distinguished between maritime Incoterms and polyvalent ones, but all thirteen Incoterms featured in a single list.
INCOTERMS 2000
EXW Ex works (polyvalent)
FAS Free alongside ship (maritime)
FOB Free on board (maritime)
FCA Free carrier (polyvalent)
CPT Carriage paid to (polyvalent)
CFR Cost and Freight (maritime)
CIP Carriage and insurance paid to (polyvalent)
CIF Cost, insurance and freight (maritime)
DES Delivered ex-ship (maritime)
DEQ Delivered ex-quay, duty paid (maritime)
DAF Delivered at frontier (polyvalent)
DDU Delivered duty unpaid (polyvalent)
DDP Delivered duty paid (polyvalent)
With regard to the 2010 Incoterms, we can see that the International Chamber of Commerce has created two categories of Incoterms, one which can be used with any mode or modes of transport – therefore including road, train, air, sea, river and any combination of these; and a second category that reflects only to those Incoterms that can be used for sea or river transport.
INCOTERMS® 2010
For any transport mode:
EXW Ex works
FCA Free carrier
CPT Carriage paid to
CIP Carriage and insurance paid to
DAT Delivered at terminal
DAP Delivered at place
DDP Delivered duty paid
For maritime and inland waterways transport only:
FAS Free alongside ship
FOB Free on board
CFR Cost and Freight
CIF Cost, insurance and freight
Pay attention to the following, it is a "stock cube", it needs reflexion to be able to dissolve and assimilate the whole content:
THE 2010 INCOTERMS OF RULES FOR TRANSPORT BY SEA AND NAVIGABLE INLAND WATERWAYS, CAN ONLY BE USED WHEN WE ARE ABLE TO FILL UP FULL VESSELS (BULK SHIPS, TANKERS, ETC) OR TO RENT OUT SPACE IN THE CARGO HOLD. NOT FOR CONTAINERS.
So, if our company does not fill up whole ships or do not hire space in the hold as it would happen with general cargo, and normally uses containers for sea transport, lorries and other means of transportation, we should not use Incoterms intended for maritime and inland waterways transport.
The good news is that, as from the thirteen Incoterms 2000 four are gone, two new have been created and companies that do not use marine Incoterms do not have to deal with four out of eleven:
13-4 + 2-4 = 7
We have gone from thirteen Incoterms to seven: that's what I call simplification.