The Incoterms rules or International Commercial Terms are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC)
On any given day our VP of Business Development, Darrell Gajadhar, can be heard testing team members on Incoterms. He believes wholeheartedly knowledge of Incoterms is invaluable. In fact, when I started with HNM Global Logistics this was the first training I received. I remember looking at the spreadsheet and thinking this is a lot of information to digest. Fortunately for me Incoterms 2010 reduced the total number of terms from 13 to 11. Less to remember – Bonus! All jokes aside, I have to agree with Darrell. If you have a role in global trade – you need to know Incoterms.
Incoterms help our industry ensure nothing is lost in translation. These three letter codes say a lot. The language of Incoterms defines the obligations, costs and risks associated with transportation and delivery. It’s crucial to know who is responsible for what, who has control and who assumes liability. There is a lot at risk when importing and exporting goods. There isn’t a default Incoterm. Each one impacts the trade process, so it’s imperative you know which term best fits your company. You should have a clear understanding of the risks and benefits associated with each Incoterm.
Our next few blog posts will be dedicated to Incoterms. Whether you’re reading as a refresher or learning something new – 10 minutes a day will save you time and money. How well do you know Incoterms?
