Incoterms®, short for International Commercial Terms, are globally recognized rules that precisely define the obligations, costs, and risks associated with the delivery of goods in international trade. The latest version in force, the
Incoterms® 2020, remains a key reference point for professionals in transport and logistics. However, with the evolution of global dynamics, 2025 is shaping up to be a crucial year to review and update operational practices.
A recap of the Incoterms® 2020
The 11 rules currently in effect are divided into two main categories:
• Rules applicable to all modes of transport: EXW, FCA, CPT, CIP, DAP, DPU, DDP.
• Rules applicable only to sea and inland waterway transport: FAS, FOB, CFR, CIF.
These rules govern fundamental aspects such as loading responsibilities, transport costs, insurance, customs clearance, and the transfer of risk.
Challenges and emerging practices for 2025
No new Incoterms® are expected in 2025, but business practices are evolving: increasingly complex logistics flows, the need for greater delivery flexibility, and new digital technologies are driving operators to make more conscious and strategic use of existing rules.
Thanks to its experience and international perspective, Farosped recommends:
• Updating international contracts to avoid ambiguity regarding loading/unloading obligations and insurance.
• Providing continuous training for staff, particularly in sales and logistics, to reduce risks linked to misinterpretations.
• Selecting the most suitable term with precision based on the product sector, destination country, and mode of transport.
Incoterms® and strategic sectors: the Farosped perspective
For companies operating in sectors where Farosped has long been a strategic partner — such as fashion, automotive, pet supplies, and home goods — the proper use of Incoterms® can make a significant difference in terms of:
• Operational efficiency
• Cost control
• Customs compliance
• Delivery reliability
Farosped’s recommendations for facing 2025
1. Review contracts annually and ensure they align with current logistics practices.
2. Avoid generic or outdated terms (e.g., FOB for containerized shipments).
3. Engage with your freight forwarder to choose the most effective Incoterm® for each shipment.
4. Monitor local regulations that may impact the interpretation or application of Incoterms®.
Farosped supports companies every day in their international trade operations, offering tailored logistics and customs consultancy. Contact us to learn how to best apply Incoterms® 2020 to your business in 2025.