Releasing your shipment
The creation of the first ever set of incoterms could be attributed to this year. It consisted of a set of six incoterms as well as the method of interpretation. They are; FOB, CIF, C and F (Cost and Freight), FAS (Free Alongside Ship), Ex Ship and Ex Quay. This was an international step taken towards the standardization of incoterms into universal rules that could be utilized and materialized within the global arena.
More revisions and standardization of incoterms came about during this year in light of World War II (WWII). With transportation of rail on the rise, in this year 3 incoterms that were non maritime were introduced.they include, Free on Truck (FOT) , Delivered Costs Paid (DCP) and Free on Rail (FOR).
This revision was launched by the ICC for the purpose of correcting misinterpretations on the version of incoterms that were published previously. Also on this version, we see the addition of two incoterms; DPP (Delivery at Destination) and DAF (Delivery at Frontier).
As Air transportation began to thrive, the need for standardized rules that governed international commercial trade on air was also on the rise. So, the introduction of the incoterm FOB Airport (Free On Board Airport) is a highlight of this revised edition. Having signified the vessel it used, the edition sought to do away with any confusion that arose between maritime FOB and FOB air travel.
Traffic of containers began to proliferate by the 1980s, and as such freight transportation began to increase. The more stringent processes of documentation called for the need for an overhaul of incoterms. FRC (Free Carrier … named at point) and FCI were introduced with this edition (today known as FCA & CIP), which goes to indicate goods that have been received at a point internally, or a container yard, as opposed to by the side of the ship.
This complete revision of incoterms brought about a change in the free carrier term in specific transportation modes. FOB (Free on Board airport) FOR (free on rail), and FOT ( free on truck ) for instance are some examples. Free Carrier was denoted as an incoterm which sufficiently covered all such modes.
In this revision, there was an amendment made in obligations pertaining to the clearance of customs.formats of incoterms were seen to have been simplified to reflect a sense of clarity in the incoterms to better facilitate the distribution of responsibility in Customs clearance.
Rules under the d family were seen to have been consolidated under this revised version. Since concerns were raised over the security aspect, we see the addition of two new incoterms while four of them were done away with. DDU, DES, DAF and DEQ were eliminated while DAT and DAP were the incoterms introduced at this stage.
Some other modifications that were made at this stage include the obligation which urged information to be exchanged between the seller and buyer, for the implementation of security measures.
Latest update on incoterms were published by the International Chamber of Commerce in the year 2020. This revision brought in the simplified version of incoterms while the parties involved in international commercial trade were granted further freedom.