Incoterms update goes into effect Jan. 1; are you ready?

IncotermsTime has flown by… somehow, it’s already Dec. 3! In no time, Jan. 1, 2011, will be upon us and that can only mean one thing — other than the fact that some of us will fail yet another resolution:

Incoterms 2010 are going into effect!

If you need a refresher of what Incoterms are, here’s a quick explanation: Incoterms are commercial terms, accepted worldwide, that detail the relationship between buyers and sellers as far as transport of goods is concerned. In other words, what are the costs and risks of freight between buyer and seller and how are they allocated?

These terms are updated every ten years or so by the International Chamber of Commerce. Companies that include Incoterms in their contracts are accountable for following the conditions. If you’re interested, you can order them here: Incoterms 2010

This FAQ from the ICC goes more in depth with Incoterms.