Under C rules the seller can pay freight to destination while risk transfers earlier at shipment/carrier handover.
Incoterms® 2020 Decision Studio
Compare the 11 Incoterms® 2020 rules by transport mode, carriage, insurance, unloading and import-clearance responsibilities without pretending one term fits every shipment.
Incoterms® answers “who delivers where?”—not “who owns the goods?”.The rule allocates delivery, risk, specified transport costs and customs responsibilities. Always write the three-letter rule + exact named place/port + “Incoterms® 2020” in the quotation/contract.
Picture the shipment before choosing a three-letter code.
Sellerfactory / warehouse
→Origin handovercarrier / terminal / vessel
→Main carriageroad · air · rail · sea
→Destinationterminal / named place
→Buyerimport / unloading as agreed
When a container is handed to a carrier/terminal before vessel loading, FCA/CPT/CIP can fit the real handover better than FOB/CFR/CIF.
“FCA” alone is incomplete. Example: FCA ICD Tughlakabad, New Delhi, Incoterms® 2020.
Who should control each part?
Containerized cargo
Seller arranges/pays main carriage
Seller must arrange cargo insurance
Seller carries delivery responsibility to destination
Seller unloads at destination
Seller handles destination import clearance/duties
Compare the top matches—then agree the exact named place.
FCAFree Carrier
Any modeRisk transfer: When the goods are delivered to the buyer-nominated carrier/person at the named place.
Often more suitable than FOB for containerized/multimodal movements where delivery occurs before vessel loading.
- Buyer controls main carriage.
EXWEx Works
Any modeRisk transfer: Seller's named premises/place before collection.
Minimal seller delivery obligation. For cross-border sales, explicitly check who can complete export clearance.
- Buyer controls main carriage.
For international sales, confirm export-clearance feasibility; FCA may be operationally cleaner when the seller can clear export.
CPTCarriage Paid To
Any modeRisk transfer: When the goods are handed to the carrier, even though seller pays carriage to destination.
Seller pays main carriage; risk transfers earlier at carrier handover.
CIPCarriage and Insurance Paid To
Any modeRisk transfer: When the goods are handed to the carrier, even though seller pays carriage and insurance to destination.
Incoterms® 2020 uses the higher default insurance level for CIP; parties can agree otherwise.
3 · All 11 Incoterms® 2020 rules
Use the shortlist to narrow the decision; use this table to understand the family.
| Rule | Mode | Main carriage paid by seller? | Seller insurance obligation? | Delivery / risk point | Destination import clearance |
|---|---|---|---|---|---|
| EXWEx Works | Any mode | No | No required by the rule | Seller's named premises/place before collection. | Buyer |
| FCAFree Carrier | Any mode | No | No required by the rule | When the goods are delivered to the buyer-nominated carrier/person at the named place. | Buyer |
| CPTCarriage Paid To | Any mode | Yes | No required by the rule | When the goods are handed to the carrier, even though seller pays carriage to destination. | Buyer |
| CIPCarriage and Insurance Paid To | Any mode | Yes | Yes | When the goods are handed to the carrier, even though seller pays carriage and insurance to destination. | Buyer |
| DAPDelivered at Place | Any mode | Yes | No required by the rule | At the named destination, ready for unloading. | Buyer |
| DPUDelivered at Place Unloaded | Any mode | Yes | No required by the rule | At the named destination after unloading. | Buyer |
| DDPDelivered Duty Paid | Any mode | Yes | No required by the rule | At the named destination, ready for unloading, after seller-arranged import clearance. | Seller |
| FASFree Alongside Ship | Sea / inland waterway only | No | No required by the rule | When goods are placed alongside the vessel at the named port of shipment. | Buyer |
| FOBFree on Board | Sea / inland waterway only | No | No required by the rule | When goods are on board the buyer-nominated vessel at the named port of shipment. | Buyer |
| CFRCost and Freight | Sea / inland waterway only | Yes | No required by the rule | When goods are on board at shipment port, although seller pays freight to destination port. | Buyer |
| CIFCost, Insurance and Freight | Sea / inland waterway only | Yes | Yes | When goods are on board at shipment port, although seller pays freight and insurance to destination port. | Buyer |
Official standard
ICC Incoterms® 2020International Chamber of Commerce (ICC)Verified 2026-09-15 · Open official source ↗Use ICC material for the contractual rule text.
This tool uses original summaries to help choose the family and handover point. It does not reproduce the full ICC A/B obligations.
Incoterms are a contract allocation framework, not a freight quote. This studio turns the commercial choices into a ranked shortlist, explains where risk transfers at a high level, and keeps cautions visible for EXW, DDP and containerized sea cargo.
Describe the real delivery arrangement
- Choose the transport profile and actual delivery point.
- State who should arrange main carriage, insurance, unloading and destination import clearance.
- Review the official ICC rule before signing a contract or letter of credit.
How OpenFileTools processes it
Source-backed inputs, explicit assumptions.
The browser scores all 11 current Incoterms® 2020 rules against the choices you make and shows the strongest matches plus explicit cautions. No contract or shipment data is uploaded.
Questions, answered.
Does the top result mean I must use that Incoterm?
No. It is a decision-support shortlist. The parties still need to agree the rule, precise named place/port and the rest of the sales contract.
Why does the tool warn about FOB for containers?
ICC notes FOB is not appropriate when goods are handed to the carrier before they are on board the vessel; FCA may better reflect that delivery point.
Related guide
Read the related guide