Recruiter's Glossary

Examples: Inventory Management • Trade Regulations • Commercial Invoice

Incoterms

Term from Logistics Consulting industry explained for recruiters

Incoterms (International Commercial Terms) are standard rules that companies use worldwide to make international shipping and trade easier to understand. Think of them as a universal language for buying and selling goods across borders. They clearly spell out who's responsible for shipping costs, insurance, and potential risks during transportation. For example, some terms mean the seller handles everything until the goods reach the buyer's country, while others mean the buyer takes responsibility as soon as the goods leave the seller's warehouse. Common variations include FOB (Free on Board), CIF (Cost, Insurance, and Freight), and EXW (Ex Works).

Examples in Resumes

Managed international shipments using Incoterms to ensure clear responsibility allocation between buyers and sellers

Trained team members on Incoterms compliance for import/export operations

Reduced shipping disputes by 40% through proper Incoterms implementation in contracts

Typical job title: "Logistics Consultants"

Also try searching for:

International Trade Specialist Supply Chain Manager Logistics Manager Import/Export Specialist Trade Compliance Manager Shipping Coordinator Global Logistics Manager

Where to Find Logistics Consultants

Professional Organizations

Online Communities

Job Resources

Example Interview Questions

Senior Level Questions

Q: How would you handle a dispute between parties regarding risk transfer under Incoterms?

Expected Answer: A senior professional should explain the process of reviewing the specific Incoterm used, checking documentation, and mediating between parties to resolve the dispute. They should also mention the importance of clear contract language and insurance coverage.

Q: How do you choose the most appropriate Incoterm for different business situations?

Expected Answer: Should discuss evaluating factors like transportation mode, costs, risk tolerance, and business relationship. Should also mention considering company capabilities and market standards in different regions.

Mid Level Questions

Q: Explain the difference between FOB and CIF terms.

Expected Answer: Should explain that FOB means the seller covers costs until goods are on the ship, while CIF means seller also pays for insurance and freight to destination port. Should be able to discuss when each is typically used.

Q: How do Incoterms affect shipping costs and responsibilities?

Expected Answer: Should explain how different terms split responsibilities and costs between buyer and seller, giving practical examples of how this affects pricing and risk management in international trade.

Junior Level Questions

Q: What are Incoterms and why are they important?

Expected Answer: Should explain that Incoterms are standardized international trade terms that define responsibilities between buyers and sellers, making global trade clearer and easier to manage.

Q: Name and describe three common Incoterms.

Expected Answer: Should be able to list and briefly explain common terms like EXW (Ex Works), FOB (Free on Board), and CIF (Cost, Insurance, and Freight) in simple terms.