Terms of sale can be thought of as sitting on a sliding scale of responsibilities, which are split between buyers and sellers according to the Incoterms rules. At one end, risk and cost are loaded towards the buyer, and at the other end they fall more with the seller.

So far, we’ve looked at:

• FCA, under which the buyer is responsible for arranging the main carriage,
• CPT, where the seller arranges the main carriage, and
• CIP, where the seller also arranges cargo insurance for the benefit of the buyer.

Finally, with the D-terms (DAP, DPU and DDP), we reach the point where the seller retains the risk of loss or damage throughout the transit, until the goods are delivered to the buyer at the agreed place.