Shipping Support

All You Need to Know About the B2B Shipment Incoterms

Understanding shipment Incoterms is essential for businesses engaged in international trade and logistics. Therefore, Luwjistik, a platform facilitating B2B transactions, offers a range of Incoterms that can be bewilderingly for both newcomers and experienced users. That’s why this article provides you with the information.

What is Shipping Incoterms?

Abbreviated as “Incoterms,” these internationally recognised trade regulations contain 11 concise terms. Initially introduced in Paris in 1936 by the International Chamber of Commerce (ICC), the Incoterms serve several key purposes:

(Source: 11 Types of Shipping Incoterms by USA Custom Clearance)

  • Standardised Interpretation: Incoterms ensure a consistent understanding of standard contract clauses, especially in export and import transactions.
  • Allocation of Costs and Risks: They define the distribution of costs and risks between buyers and sellers, specifying when these responsibilities shift.
  • Guidance for Stakeholders: Incoterms provide clear directives to various stakeholders in the shipping process, including carriers, forwarders, and customs brokers.

It’s important to note that Incoterms are not legally binding. They do not represent government-enacted laws but serve as voluntary guidelines for parties entering into contracts. Ultimately, the update adds that the buyer and seller must mutually agree upon their responsibilities and the associated costs and risks involved in a shipment before proceeding.


Why are Incoterms Important?

Importers and exporters should evaluate the most suitable Incoterms before initiating contract negotiations. Doing so can help avoid unexpected expenses and unnecessary complexities. 

Furthermore, selecting an Incoterm facilitates alignment with your shipper, ensuring a clear understanding of shipping procedures in multi-party transactions. As mentioned in the link above, these internationally recognised terms guarantee prompt payment for goods, services, and duties while safeguarding the interests of shippers, network partners, and receivers.


Factors to Consider When Selecting an Incoterm

When it comes to international sales of goods contracts, more than simply utilising an Incoterm is required; choosing the right one is crucial. There are various factors to consider when selecting an Incoterm for a sales contract.

Here are some factors that are mentioned in the update to contemplate and advice for making the appropriate Incoterms selection:

  • Suitability for Importation or Exportation
    • Consider whether the Incoterm is better suited for importers or exporters based on your role in the transaction.
  • Types of Goods
    • Consider the goods’ nature and select an Incoterm accordingly.
  • Parties’ Experience Levels
    • Factor in the experience level of the parties involved in the transaction.
  • Control Over Goods, Operations, and Costs
    • Different Incoterms grant varying levels of management to buyers and sellers.
  • Relationship Between Seller and Buyer
    • Consider the level of familiarity between the parties involved.

Now that we have explored the fundamentals of shipping Incoterms, their significance in international trade, and the range of options Luwjistik offers, let’s delve deeper into how Luwjistik B2B Incoterms can help you make informed decisions for your business transactions.


Ship Your Packages with Luwjistik B2B Shipment

Luwjistik provides a comprehensive suite of Incoterms to streamline your international trade and logistics operations. With Luwjistik, you can make informed choices, ensure smooth transactions, and confidently ship your packages.

Here’s how Luwjistik can benefit your business overview of how luwjistik can help your business:

  • Integrated API
    • Streamline B2B shipping processes with real-time data exchange and centralised order management.
  • Transparent Pricing
    • Gain clear insights into shipping costs for better budget management and decision-making.
  • Tailored Solutions
    • Customise logistics to align with your specific B2B requirements, optimising efficiency and responsiveness to market changes.

To embark on a transformative journey and explore these strategic logistics approaches, visit our website at or contact our representative at today.