Moving coffee around the globe is an expensive and risk-involved business. That is why the International Chamber of Commerce defined Incoterms®.
The terms act as a common code between companies that trade overseas and in counties of destination.
Who pays for the movement of coffee and when is responsibility transferred?
The terms of delivery we use in contracts are based on the Incoterms®. They tell you two important things:
- who organizes and pays for the transport,
- and when and where the seller transfers the responsibility to the buyer.
When you buy coffee from a green coffee importer, the coffee already traveled to a warehouse near you. The question for you, as a green buyer, is; will you pick up the coffee yourself or do you want your importer to arrange transport? So, which terms of delivery can you choose?
The 4 common terms of delivery you find within coffee contacts
As a green buyer, you can pick 4 terms of delivery; Ex Warehouse (EXW), Free Carrier (FCA), Cost, Insurance, and Freight (CIF), and Delivery Duty Paid (DDP).