EXW vs DDP vs CIF vs FOB – Which Incoterm Are You Getting Wrong?

Incoterms (EXW, FCA, FOB, CIF, CIP, DAP, DDP) decide who pays, who is liable, and who gets burned when a shipment goes wrong. In this video, we walk the supply chain step by step, from the factory floor in China or Vietnam to your warehouse door. No textbook definitions. Just plain English, real failure cases, and my honest verdict on which Incoterms you should actually use. ► Free China sourcing guide: https://sourcing.worldfirst.com/?utm_... Get set up for smoother supplier payments and better FX control: https://www.worldfirst.com/?utm_mediu... ––––––––––––––––––––––––– ⏰ Video Time Stamps 00:00 Incoterms 2020 in one sentence: cost, risk, liability 01:03 EXW (Ex Works): why it’s a liability nightmare 03:45 FCA Seller's Premises: the EXW upgrade importers should use 05:00 FOB (Free On Board) for containers: the terminal "risk gap" trap 06:44 FCA Terminal/Port: the safer alternative for container freight 7:55 CIF (Cost, Insurance, Freight): the LCL hostage-fee scam 10:05 CIP (Carriage and Insurance Paid To): better risk + all-risk insurance 11:08 DAP (Delivered At Place): the sweet spot for many importers 11:48 DPU (Delivered at Place Unloaded): when unloading is the real problem 11:26 DDP (Delivered Duty Paid): the VAT trap for UK/EU B2B importers 14:13 My Incoterms cheat sheet (origin, ocean, insurance, arrival) 15:20 Final advice: don’t lose margin on FX after winning Incoterms ––––––––––––––––––––––––– 🎯 What You’ll Learn in This Video EXW vs FCA: who loads the truck and who carries the risk Why FOB is risky for containers (and what to use instead) How FCA Terminal/Port closes the "risk gap" Why CIF is dangerous for LCL and how destination fees happen CIF vs CIP insurance: Clause C vs Clause A (what actually gets covered) DAP vs DPU vs DDP: what you should pick for B2B imports A simple playbook for safer, cleaner shipments ––––––––––––––––––––––––––––––––––––––––––– 💡 Pro Tip If you ship containers, treat FOB as legacy vocabulary, not a default. Use FCA (terminal/port) to make liability clean and insurable. If the seller arranges freight, push for CIP, not CIF. And remember: clean data and clean financial infrastructure go hand in hand. If your payments are a "black box," you lose the leverage needed to stay competitive. WorldFirst helps over 1.5 million businesses manage global operations and pay suppliers smoothly, ensuring your back-office is as efficient as your AI-optimized storefront. 👉 Learn more about WorldFirst: https://www.worldfirst.com/?utm_mediu...