CARGO (International Commercial Terms)

CARGO refers to International Commercial Terms (Incoterms), which are standardized rules created to clarify the responsibilities of buyers and sellers in international trade. These terms outline who is responsible for shipping, insurance, and tariffs at different stages of the transport process. For example, terms like "FOB" (Free on Board) indicate that the seller covers costs until the goods are loaded on a ship, while "CIF" (Cost, Insurance, and Freight) means the seller also pays for shipping and insurance. Understanding these terms helps avoid disputes and clarifies each party's obligations during transactions.