Confused by DDP, EXW, FOB, CIF, CBM? This complete glossary of international shipping terms will help Amazon sellers, importers, and exporters understand carrier language once and for all.
INCOTERMS (International Commercial Terms) are a set of trade term definitions developed by the International Chamber of Commerce (ICC) and recognized internationally. They're the language you will need when trading abroad.
Key INCOTERMS Explained
EXW
Ex Works
The seller makes goods available at their premises. Full responsibility for insurance, payments, and transport transfers to the buyer from that point.
FCA
Free Carrier
The seller delivers goods to the carrier nominated by the buyer in the country of export. Responsibility passes upon delivery and signed confirmation.
FOB
Free on Board
Responsibility passes when goods are delivered on board the ship at the port of export. For sea transport only. Not recommended for containers.
CFR
Cost & Freight
Supplier enters a contract of carriage with the sea carrier to the destination port. Insurance is the buyer's responsibility. Sea freight only.
CIF
Cost, Insurance & Freight
Same as CFR but supplier must also purchase marine insurance policy for the buyer. Sea freight transactions only.
DAP
Delivered at Place
Seller delivers cargo at an agreed place in the importing country. Import customs clearance is the buyer's responsibility.
DDP
Delivered Duty Paid
Seller delivers goods to the buyer cleared for import at named destination. The most comprehensive — seller handles everything including duties and taxes.
DDU
Delivered Duty Unpaid
Like DDP but the buyer is responsible for import customs duties and taxes. Seller delivers but does not pay customs.
Shipment Modes
International shipping modes are sea, air, and land. Sea freight takes several weeks and is suitable for large containers. Air freight is faster and more expensive. All items must obtain customs clearance at airport, seaport, or land port.
Weight & Volume Calculations (CBM)
📐 CBM Calculation for Sea Freight
Length × Width × Depth × Number of cartons = Volume (CBM)
Multiply the result by 167 to get the chargeable weight. With express sea shipment, you're charged by KGs. With normal sea shipment, you pay the higher of volume or weight — usually volume.
✈️ Air Freight Calculation
Standard Air: (Number of cartons × H × L × W) ÷ 6000 = Chargeable weight
Express Air: (Number of cartons × H × L × W) ÷ 5000 = Chargeable weight
⚠️ Pay attention: Cartons are elastic. When packing, sides expand and create higher volume. Every cm is important — 1 or 2 cm in volume for 1,000 kg changes weight by ~100 kg.
Other Important Terms
LCL
Less Than Container Load
Your goods share a container with other sellers' shipments. More economical for smaller volumes.
FCL
Full Container Load
You rent an entire container. Better for large volumes and sensitive products.
ETD
Est. Time of Departure
The expected date your shipment will leave the origin port.
ETA
Est. Time of Arrival
The expected date your shipment will arrive at the destination port.
HS CODE
Harmonized System Code
A standardized numerical method of classifying traded products. Essential for correct customs and avoiding fines.
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