Incoterms 2020 Dictionary: Every Term Explained with Visuals
That’s why we created the Incoterms 2020 Dictionary: a simple, graphic-first resource where each Incoterm is explained with icons, responsibilities, and a clear visual of who covers what.
Scroll down to explore each term — then 👉 Download the full poster to keep it at your desk, share with your team, or include in training materials.
What Are Incoterms?
Incoterms (short for International Commercial Terms) are globally recognized trade rules published by the International Chamber of Commerce (ICC).
They define the responsibilities of buyers and sellers for:
- 🚢 Shipping
- 📍 Delivery location
- 💰 Risk transfer
- 💸 Costs and insurance
They ensure clarity in contracts, reduce disputes, and streamline global trade.
Incoterms 2020 – Categorized by Mode of Transport
Incoterms 2020 are divided into:
For Any Mode of Transport:
- EXW – Ex Works
- FCA – Free Carrier
- CPT – Carriage Paid To
- CIP – Carriage and Insurance Paid To
- DAP – Delivered At Place
- DPU – Delivered at Place Unloaded
- DDP – Delivered Duty Paid
For Sea & Inland Waterway Transport:
- FAS – Free Alongside Ship
- FOB – Free On Board
- CFR – Cost and Freight
- CIF – Cost, Insurance and Freight
Incoterms Explained: Graphics Per Term
Below is a summary of each Incoterm with a brief explanation. On the full poster, each is accompanied by a visual responsibility bar indicating who pays for what.
🛠️ EXW – Ex Works
🚚 Buyer handles everything from pickup to delivery.
📍 Seller makes goods available at their premises.
📦 FCA – Free Carrier
📍 Seller delivers to a carrier chosen by buyer.
🛡️ Risk transfers once cargo is handed to the carrier.
🚛 CPT – Carriage Paid To
📍 Seller pays transport to destination.
🛡️ Risk transfers at origin once goods are handed to the carrier.
🛡️ CIP – Carriage & Insurance Paid To
Same as CPT, but seller must also buy minimum insurance coverage.
📬 DAP – Delivered At Place
📍 Seller delivers to final location, buyer handles unloading and duties.
🛡️ Risk remains with seller until arrival.
🏗️ DPU – Delivered at Place Unloaded
📦 Seller delivers and unloads goods at agreed location.
🚨 Buyer handles customs and import duties.
🇨🇺 DDP – Delivered Duty Paid
📍 Seller handles everything, including import customs and taxes.
🙌 Buyer just receives the goods.
⚓ FAS – Free Alongside Ship
📍 Seller places goods next to the vessel at the port.
🛡️ Buyer takes over from there.
🛳️ FOB – Free On Board
📍 Seller loads cargo on board at port of origin.
🚢 Buyer takes over at the vessel.
🌊 CFR – Cost and Freight
📍 Seller pays for transport to destination port.
🛡️ Risk transfers once loaded at origin.
💼 CIF – Cost, Insurance & Freight
Like CFR, but seller must also provide marine insurance.
🎯 When to Use Each Term
Situation | Suggested Incoterm |
Maximum buyer control | EXW, FCA |
Shared responsibilities & mid-risk | CPT, CIP |
Seller-managed delivery (international) | DAP, DDP, DPU |
Sea freight only | FAS, FOB, CFR, CIF |
✅ Choose based on mode of transport, buyer experience, and risk tolerance.
Visual Learning: Why It Matters
Learning Incoterms with words alone can be hard. That’s why this resource includes icons and color-coded responsibility bars for:
- 🚚 Transport
- ⚖️ Risk transfer
- 💵 Payment obligations
- 🛃 Customs clearance
Visuals make Incoterms easier to understand, memorize, and apply.
Download the Incoterms 2020 Poster
Want all 11 terms explained side-by-side in one printable visual?
👉 [Download the poster]
Perfect for:
📍 Training rooms
📍 Freight desks
📍 Client presentations
📍 Contract negotiations
Suggest a Term Incoterms 2020 Dictionary
Need another trade term explained visually?
👉 Click here to Suggest a term for our next dictionary update.