Incoterms and Export Risk Management for Honey Shipments (2D)

Incoterm

Rule FOB

Shipment

Cargo value $24,000

Freight + insurance rate 8.0%

Import duty rate 6.0%

Cargo travel speed 1.0×

Auto-advance cargo

Seller bears risk

Buyer bears risk

Seller pays freight/insurance

Live Readout

Risk transfers at

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Cost transfers at

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Cargo currently at

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Risk held by

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Seller pays (freight+ins.)

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Buyer pays (freight+ins.)

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Seller pays duty

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Buyer pays duty

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Insurance obligation

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Buyer's total landed cost

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How it works

Every Incoterm answers two separate legal questions: at what point does risk of loss pass from seller to buyer, and who pays freight, insurance and duty along the way? This lab places both boundaries on the same route and computes each party's dollar exposure live.

EXW — both risk and cost pass the instant goods leave the factory. Maximum buyer exposure, no insurance required of the seller.
FOB — risk and cost both pass once loaded aboard at the origin port.
CFR — risk passes at the origin port rail (same as FOB), but the seller must pay freight all the way to the destination port. No insurance obligation.
CIF — like CFR, but the seller must also buy minimum cargo insurance (ICC Clause C, at least 110% of invoice value) covering the buyer's risk during the sea leg.
DDP — the seller bears risk, freight, insurance and import duty all the way to the buyer's door. Maximum seller exposure.

Import duty is paid by the buyer under every rule except DDP, where the seller — not the buyer — clears and pays it. Cargo value, freight/insurance rate and duty rate are independent sliders so you can see how a shipment's own economics change the dollar split, not just the legal boundary.