GlossaryEN1 min readUpdated: Jun 22, 2026

Delivery terms

Delivery terms establish who bears freight costs, where goods change hands, and at what point the risk of loss or damage transfers from seller to buyer—making them a core element of any sales contract.

Quick Answer

Last updated: 22 June 2026Published: 19 June 2025

Source: https://iccwbo.org/business-solutions/incoterms-rules/

Category

Incoterms 2020 Simulator: Who bears costs & risk?

Reading time

1 min

Words

107

Mentioned in

–

Definition & Explanation

Delivery terms establish who bears freight costs, where goods change hands, and at what point the risk of loss or damage transfers from seller to buyer—making them a core element of any sales contract. The globally recognised standard is the ICC's Incoterms, which sets out eleven trade terms ranging from EXW (Ex Works) to DDP (Delivered Duty Paid). Shippers, freight forwarders, and buyers must state the agreed term clearly in both the sales contract and on shipping documents; ambiguity routinely leads to liability disputes when cargo is damaged or delayed. Delivery terms should not be confused with payment terms, which govern when and how invoices are settled.

Next steps

Matching tools and partners

Compare IncotermsClarify duties, cost and riskOpen Find HS codeDetermine the tariff number for customsOpen Calculate customs valueWork out import duties and customs valueOpen Find a matching partnerFreight forwarders and logistics partners worldwideOpen

Related Terms

You might also be interested in these terms

Temporary Storage Facility

A temporary storage facility provides short-term buffering, consolidation, or pre-dispatch preparation for goods in transit, witho…

Spot Rate

The spot rate is the current market price for a single transport service booked at short notice – without any longer-term contract…

Long-term origin declaration

When a supplier makes recurring deliveries of the same goods to the same buyer over an extended period, a long-term origin declara…

Deferred Payment

A seller ships the goods but the invoice is settled only at an agreed future date—typically 30, 60, or 90 days after delivery or i…

Depot

In logistics operations, a depot is the point in the supply chain where goods are temporarily received, sorted, or consolidated be…

freight market

The freight market connects providers of transport capacity – shipping lines, airlines, and road hauliers – with buyers such as sh…

⚖️ ICC Incoterms 2020

Incoterms 2020 Simulator: Who bears costs & risk?

Analyze all 11 Incoterms 2020: cost matrix, risk timeline, insurance gap detector and customs responsibility – free, no login required.

Incoterms Simulator →

Connect

Find a matching partner on this lane

Verified forwarders, ranked by coverage and profile — premium capped at 10%.

Search partners

Logistics knowledge straight to your inbox

Free · No password · Never a paywall. Weekly top news and facts from logistics.

Community Questions & Answers

Share your knowledge, ask follow-up questions, or add practical insights to this page. Every contribution is moderated before publication.

No community answers yet. Be the first.