Incoterms 2025 — what AU importers and exporters actually need

Incoterms exist to allocate cost and risk. Most AU SMEs use four: FOB, FCA, CIF, and DAP. The other seven exist but rarely apply in day-to-day trade.

The single biggest mistake we see is buying FOB on a containerised shipment. FCA is almost always the correct term — FOB was designed for bulk and break-bulk where cargo crosses the ship's rail. With containers, your risk should transfer at the terminal gate, not at the rail.

DAP feels convenient but transfers full inbound visibility to the supplier's nominated forwarder. If you're paying for it anyway, you're better off with CIF + your own forwarder on the AU leg.