Incoterms 2020 Updates: What Businesses Need to Know
At Shipping Containers of Manchester, we stay ahead of the game to ensure you get expert support on every international shipment. With the launch of Incoterms® 2020 on 1st January 2020, it’s vital to understand the changes and how they affect your freight and logistics operations.
What’s New in Incoterms® 2020
- FCA (Free Carrier): More flexibility has been added. Delivery can now happen either at the seller’s premises or another agreed-upon location (such as a freight forwarder’s terminal). This is ideal for air and maritime shipments.
- DPU (Delivered at Place Unloaded) replaces DAT (Delivered At Terminal) to allow delivery to any site, not just terminals, such as construction sites.
- CIP vs CIF Insurance Levels: CIP (Carriage and Insurance Paid To) now requires full insurance cover; CIF (Cost, Insurance, and Freight) only requires minimal insurance. Choose carefully based on your cargo type and value.
- Own Transport Clarifications: Buyers and sellers can now use their vehicles for transport under Incoterms groups E (EXW), F (FAS, FCA, FOB), and D (DPU, DDP), adapting to modern logistics practices.
Key Recommendations for 2020
- Maritime Terms: Use FAS, FOB, CFR, and CIF strictly for bulk goods, not containerised shipments.
- EXW (Ex Works): Best reserved for domestic transactions, not international shipments.
- Better Risk Understanding: Know your Incoterms inside out — they define your responsibility and liability during transit.
How Manchester Businesses Should Prepare
- Review the Incoterms you commonly use in your contracts.
- Consult experts to ensure you apply the right terms for your goods and destinations.
- Amend your sales and purchase contracts to reflect Incoterms® 2020 from January onwards.
Understanding these updates ensures smoother shipping operations, fewer disputes, and better risk management, vital for a successful import/export business.
Need Shipping Containers for Your Next Shipment?
Whether you need a 20ft shipping container, a 40ft high cube container, or specialised units, Shipping Containers of Manchester offers flexible container solutions, perfect for international trade.