Incoterms for Bulk Cooking Oil: FCA, FAS, FOB, CFR, CPT and DAP Explained

Every international oil order needs agreed shipping terms. Incoterms® rules, published by the International Chamber of Commerce (ICC), are the standard three-letter terms that say who arranges and pays for transport, who insures the goods, who clears customs and, most importantly, at what point the risk of loss or damage passes from seller to buyer. This guide explains the six rules we offer for bulk cooking oil and how to choose between them.

What Incoterms rules do, and what they don’t

An Incoterms rule, written with a named place, for example “FOB Port of Savannah” or “CFR Lagos”, sets out:

• Delivery: where and how the seller delivers the goods.
• Risk: the point where responsibility for loss or damage passes to the buyer.
• Costs: which costs the seller pays and which the buyer pays.
• Customs: who handles export clearance and who handles import clearance.

They do not set the price, the payment terms or when ownership of the goods passes. Those are covered by your quotation and our Terms of Sale. Always quote the version too: our quotations use Incoterms® 2020.

The rules fall into two groups. Some can be used for any mode of transport, including trucks and containers; others are only for sea and inland waterway shipments, port to port.

The six rules we offer

Rule	Transport	We arrange and pay	Risk passes to you	Typical use
FCA Free Carrier	Any mode	Export clearance and delivery to your carrier at the named place	When the goods are handed to your carrier	Buyers with their own forwarder or truck
FAS Free Alongside Ship	Sea only	Export clearance and delivery alongside your vessel at the named port	When the goods are alongside the vessel	Uncommon for containers; mainly bulk cargo
FOB Free on Board	Sea only	Export clearance and loading on board your vessel at the named port	When the goods are on board	Buyers who book their own ocean freight
CFR Cost and Freight	Sea only	Export clearance and ocean freight to the named destination port	When the goods are on board at the US port of loading	Importers who want freight arranged for them
CPT Carriage Paid To	Any mode	Export clearance and carriage to the named place	When the goods are handed to the first carrier	Door or inland deliveries, multimodal routes
DAP Delivered at Place	Any mode	Delivery to the named place, ready for unloading	When the goods arrive at the named place, ready for unloading	Truck deliveries in the US, Canada and Mexico; door delivery abroad

Under all six, import clearance, duties and taxes in your country are your responsibility, as is unloading at the destination.

Each rule in more detail

FCA: Free Carrier

We clear the oil for export and hand it to the carrier you nominate at the named place, for example our facility or a port terminal. From that moment, freight, insurance and risk are yours. FCA works for any mode of transport, and the ICC describes it as well suited to container shipments, because containers are usually handed over at a terminal before they are loaded on the ship.

FAS: Free Alongside Ship

We deliver the oil, cleared for export, alongside the vessel you nominate at the named port. Loading onto the ship, freight and insurance are yours. FAS is mainly used for bulk and break-bulk cargo, and is rarely the best fit for containers.

FOB: Free on Board

We clear the oil for export and load it on board the vessel you nominate at the named US port. Ocean freight, insurance and risk are yours from that point. FOB is familiar to many importers, but it is designed for port-to-port sea shipments. For containerized oil, the ICC suggests FCA is usually the better fit.

CFR: Cost and Freight

We book and pay ocean freight to the named destination port, so you receive a price that includes freight. The important detail is that risk still passes to you when the oil is on board at the US port of loading, not when it arrives. Marine insurance is not included under CFR, so arrange cover for the voyage yourself, or ask us whether cargo insurance can be added to your quotation as a listed charge.

CPT: Carriage Paid To

We pay carriage to the named place, which can be inland, but risk passes to you when we hand the oil to the first carrier. Like CFR, it splits the point where costs end from the point where risk passes, so insurance from handover onward is your responsibility.

DAP: Delivered at Place

We deliver the oil to the named place, ready for unloading, and carry the risk until it arrives. Unloading, import clearance, duties and taxes are yours. Most orders within the United States, and truck deliveries to Canada and Mexico, are made on DAP terms.

Why we don’t offer CIF, CIP or DDP

• CIF and CIP require the seller to buy insurance on the buyer’s behalf. Under the 2020 rules, CIF requires at least minimum cover (Institute Cargo Clauses C), while CIP requires the broader Institute Cargo Clauses A. Many importers prefer to choose their own insurer and cover, so we offer CFR and CPT instead, and can confirm on request whether cargo insurance can be added as a separate charge.
• DDP requires the seller to clear the goods for import and pay duties and taxes in the buyer’s country. Import rules, duty rates and registration requirements vary widely, and are best handled by the importer or a local customs broker.

How to choose

• You have your own freight forwarder: choose FCA, or FOB if your forwarder prefers it for a port-to-port booking.
• You want freight arranged to your port: choose CFR, and arrange marine insurance from the port of loading.
• You want delivery to an inland address or warehouse: choose CPT or DAP.
• You are in the United States, Canada or Mexico: DAP truck delivery is usually simplest; FCA works if you collect with your own carrier.
• You are new to importing: CFR or DAP keeps the shipping simple, but talk to a customs broker in your country about import clearance, duties and any registration your market requires.

Whichever rule you choose, your quotation names the place, the US port of loading where relevant, the route and an estimated arrival date, and lists exactly what is and is not included in the price. Read more about our routes on our export and shipping page, or see our guide to choosing a bulk pack.

Ready to compare terms for your order? Add your oils to your quote list and choose your preferred shipping terms in the request.

Sources

• ICC Academy: Incoterms® 2020, FCA or FOB?
• ICC: Incoterms® 2020 compared with Incoterms® 2010, including CIF and CIP insurance

Incoterms® is a registered trademark of the International Chamber of Commerce. This guide is a plain-language summary; the full rules are published by the ICC.