In September 2019, the International Chamber of Commerce
released Incoterms 2020, heralded as a groundbreaking version of
Incoterms that would bring great change to the supply chain
community. Two years later, we look back on the changes that
occurred and how they have affected us.
First, what changes were made after all? Let's take a
look at the major ones:
FCA – The buyer and the seller can
agree that the buyer will instruct its carrier to issue an on-board
bill of lading to the seller after the loading of the goods, the
seller then being obliged to tender that bill of lading to the
buyer, typically through the banks.
Since that's a little dense, let's break it down.
Basically, if the buyer is using a letter of credit to buy
something from the seller, the seller needs the on-board bill of
lading to submit to the bank in order to get paid. However,
since it's the buyer's truck that is being sent in to pick
up the goods, the seller doesn't always get a copy
