Loading and Unloading Obligations
Allocation between seller and buyer of obligations and risks related to loading and unloading of goods under the various Incoterms.
General Principle
Loading and unloading obligations vary considerably from one Incoterm to another. These physical operations often constitute critical moments where risk transfer occurs. Misunderstanding these obligations is a frequent source of disputes in international trade.
Loading Under Incoterms
| Incoterm | Loading at seller's premises | Loading onto main transport |
|---|---|---|
| EXW | Buyer (unless agreed) | Buyer |
| FCA (seller's premises) | Seller | Buyer |
| FCA (other place) | Seller (on own transport) | Buyer |
| FAS | Seller (alongside ship) | Buyer |
| FOB | Seller (on board) | Seller |
| Group C | Seller | Seller |
| Group D | Seller | Seller |
Unloading Under Incoterms
Unloading at destination is the buyer's responsibility under almost all Incoterms, with one notable exception:
- DPU: the seller must unload the goods at destination
- All others: the buyer unloads (including DAP, DDP)
Practical Considerations
Terminal Handling Charges (THC) are often a source of confusion. The transport contract may include or exclude these charges, independently of the chosen Incoterm. It is essential to specify in the sale contract who bears THC at loading and discharge to avoid disputes.