So what are Incoterms anyway? Plus our top 5 tips for using them right

Have you ever sagely nodded your head in a meeting when the logistics guys insist on buying goods DDP, only to rush out and google what that actually means?

Well, DDP is an Incoterm. Incoterms are a nifty shorthand means of agreeing who is responsible for the costs and risks associated with the international sale of goods. With a three letter acronym you can confirm when risk in the goods passes from the supplier to the recipient, and who is responsible for transporting, insuring, and paying duties on them.

The first set of Incoterms was issued in 1936 by the International Chamber of Commerce (ICC), with the current version coming into effect in 2011 (Incoterms® 2010). There are currently 11 Incoterms, 7 of which can be used for any mode of transport, and 4 of which only apply to transport by water.