Expeditors (EXPD) investor relations material

Incoterm selection and responsibilities

• FCA is generally preferred over EXW for international moves: the seller loads, export-clears and hands goods to the carrier at the named place; EXW places loading, export clearance and transport risk on the buyer.

• Under FCA, risk and cost transfer when goods are handed to the buyer-nominated carrier; post-handover inspection and storage costs generally fall to the buyer, while export-country inspections before the named place fall to the seller.

• FOB 2020 is for sea and inland waterway transport with goods loaded directly aboard the vessel; FCA is preferred for container, multimodal and multiple-touchpoint moves.

• Prepaid/collect identifies who pays freight, not where risk transfers; UCC domestic FOB and Incoterms FOB are separate systems.

Risk, insurance and title

• Under CPT, seller risk ends when goods reach the first carrier it contracts with, although the seller pays carriage to the named destination; CPT has no insurance obligation, so buyers should arrange financial protection or consider CIP.

• Incoterms allocate risk and cost, not title; successive sales have separate contracts and terms, and in-transit resale does not alter original FOB terms. Align shipping documents, insurance and destination details.

• Carrier liability caps can be well below cargo value; arrange cargo insurance directly or through a freight forwarder when broader protection is needed.

• DDP assigns the seller costs, carriage, import formalities, duties and risk through the named destination; check local restrictions and consider tariff exposure.

Contract and customs considerations

• EAPA does not change Incoterms, and DDP with a foreign IOR remains a valid contractual choice; review potential duty, AD/CVD and penalty exposure, bond sufficiency, and whether DAP with a U.S. IOR is preferable.

• A shipment's Incoterm can differ from the contract default only by mutual agreement and written documentation; avoid unilateral changes and state the actual term on the commercial invoice.

• U.S. customs valuation uses an FOB/FCA basis, excluding freight and insurance; many other countries use CIF valuation, potentially including those costs. Research importing-country rules and itemize invoice components.

• Under DAP, the seller bears cost and risk to the named destination, while the buyer handles import clearance and duties; clearly define the named place and contract allocations.