08/27/2026
Incoterms decide who pays for what, and who's on the hook when something goes wrong. Get them wrong, and it's your bottom line that absorbs the mistake. Here are 3 mistakes we see importers make constantly:
1. Defaulting to FOB because it's familiar. FOB puts you in control of the main freight, insurance, and risk the moment the goods clear the origin port. If you're not set up to manage that, you're exposed the second the container is loaded.
2. Assuming DDP means "done and worry-free." DDP shifts nearly ALL responsibility (duties, taxes, customs clearance) onto the seller. Sounds great, until a customs issue holds your shipment and you have zero visibility into why, because you weren't the one managing the process.
3. Not matching the Incoterm to your actual capabilities. Choosing EXW because it looks cost-effective on paper, then realizing you don't have the freight, customs, or trucking relationships to execute it, is one of the most expensive mistakes importers make.
The right Incoterm depends on your risk tolerance, your logistics capabilities, and what you're actually equipped to manage. Check out our blog for the full breakdown: https://www.logiworldllc.com/news/guides/a-complete-guide-to-incoterms-for-international-shipping/
