Choosing the Right One for Sea Transport — Incoterms® 2020

Abstract

The paper presents the main features of Incoterms® 2020, i.e., the International Chamber of Commerce rules for the use of domestic and international trade terms, which came into force on January 1, 2020. The International Chamber of Commerce revises the current Incoterms® rules every few years to eliminate vague and/or imprecise interpretations of the obligations of parties involved in the international trade. The revisions result in changes to existing terms and/or the introduction of new terms that help facilitate the flow of goods both domestically and internationally. Therefore, this paper aims to present the main features of the latest Incoterms® terms that are in force and are used in international trade. In addition, changes to previous Incoterms® terms are examined and presented in order to highlight key differences that may influence the choice of the relevant term. Particular attention has been paid to Incoterms® terms used in sea transport, as sea transport remains the dominant transport sector in the world trade.