Understanding Incoterms 2020 in Bitumen Export Contracts
Incoterms define responsibilities between buyers and sellers during international trade. In bitumen exports, misunderstanding Incoterms can lead to unexpected costs and disputes.
FOB (Free on Board)
Under FOB terms, the seller delivers the bitumen onto the vessel at the port of origin. Risk transfers to the buyer once the cargo is loaded.
CFR (Cost and Freight)
CFR includes ocean freight costs paid by the seller, but insurance remains the buyer’s responsibility. This term is common for bulk and drum bitumen shipments.
CIF (Cost, Insurance, and Freight)
CIF offers more protection for buyers, as insurance is included up to the destination port. Many first-time buyers prefer CIF contracts for reduced risk.
Selecting the right Incoterm aligns risk, cost control, and logistics strategy with your project needs.
