What are Incoterms and which are used in marine supply? FOB, CIF, DAP and DDP delivery terms, risk and cost transfer explained for ship supply.
E-ShipSupply
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In a ship-supply order, one question is as important as price: where, by whom, and at what risk will the goods be delivered? The standard answer is given by Incoterms. Published by the International Chamber of Commerce (ICC), Incoterms set clear rules for delivery, risk and cost responsibility between buyer and seller. This guide explains the Incoterms most used in marine supply.
Incoterms (International Commercial Terms) are standard rules defining delivery terms in international trade. Each term specifies where goods are delivered, who bears transport and insurance costs, and at what point risk passes to the buyer. The current version is Incoterms 2020. In marine supply these are used together with the delivery port (e.g. "FOB Istanbul").
A misunderstood delivery term leads to unexpected freight, insurance or customs costs — and can leave goods waiting at port. Since marine supply usually delivers to a port, the Incoterm and delivery port should be clarified together. Stating both clearly at the quotation stage prevents later disputes.
On e-ShipSupply, suppliers can state the delivery term (Incoterms), delivery port and lead time as structured fields. So when a buyer reviews a product listing, they see delivery terms alongside price and can source the item found by IMPA code under the right conditions.
Under FOB the seller loads the goods and risk passes there; transport and insurance are the buyer's. Under CIF the seller also covers freight and insurance, but risk still passes at loading.
The most common are FOB, CIF, DAP and DDP; the choice depends on responsibility sharing and the delivery port.
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