EXW, FOB, CFR, and DDP are the Incoterms that are most frequently used in relation to marine freight. They can be separated into two groups based on advantages for both buyers and sellers.
Simply said, FOB and EXW are the most advantageous rules for a buyer. They give the option of selecting a freight forwarder, who is in charge of planning a significant portion of the shipment. In contrast, the seller selects a freight forwarding company when using CFR or DDP.
Furthermore, compared to CFR and DDP, EXW and FOB terms offer more flexibility in terms of planning, budgeting, and transportation. Who pays for costs associated with, for example, loading and unloading, customs processes, and insurance are also determined under Incoterms 2020.
FOB is without a doubt the rule that is applied the most in maritime transit. It should be noted that this choice solely and only pertains to interior and maritime transportation.
Like FOB, CIF is only used in the context of maritime and inland shipping. It is the second most popular rule in marine transportation as a result. An alternative to CIF in this situation is a CIP rule. It is not advised to transport containers using CIF.
The Incoterms 2020 FCA rule is the foundation for about 40% of contracts throughout the world. The fundamental reason for this is that it pertains to all forms of transportation, including combination transport.
Any mode of transportation is subject to Incoterms 2020 DAP. This formula can also be applied to combined transportation, which combines several modes of transportation.
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