Incoterms
Incoterms, also known as International Commercial Terms, are standardized rules that help companies understand their responsibilities when shipping goods internationally. Think of them as a universally understood "shipping language" that explains who pays for what and who's responsible for the goods at each step of the journey. These terms help avoid confusion between buyers and sellers from different countries, making international trade smoother and clearer. Common examples include FOB (Free On Board), CIF (Cost, Insurance, and Freight), and EXW (Ex Works). When you see these terms in resumes, they indicate that the candidate understands international shipping responsibilities and costs.
Examples in Resumes
Managed international shipments using Incoterms 2020 rules for 50+ global clients
Trained team members on Incoterms and International Commercial Terms compliance
Reduced shipping costs by 15% through strategic selection of Incoterms in international contracts
Typical job title: "Logistics Coordinators"
Also try searching for:
Where to Find Logistics Coordinators
Professional Organizations
Online Communities
Job Boards
Example Interview Questions
Senior Level Questions
Q: How would you explain the difference between FOB and CIF to a new client?
Expected Answer: A senior candidate should be able to clearly explain that FOB means the seller is responsible until goods are on the ship, while CIF means the seller also pays for insurance and freight to the destination port. They should give practical examples of when to use each.
Q: How have you used Incoterms to reduce company shipping costs?
Expected Answer: They should provide specific examples of how choosing different Incoterms affected costs, such as negotiating better terms with suppliers or choosing terms that better balance risk and cost.
Mid Level Questions
Q: What are the main changes in Incoterms 2020 compared to previous versions?
Expected Answer: Should be able to explain key changes like the replacement of DAT with DPU, and increased focus on security requirements, showing they stay current with industry updates.
Q: Which Incoterm would you recommend for a new exporter and why?
Expected Answer: Should suggest beginner-friendly terms like EXW or FCA and explain why these terms minimize risk for new exporters while they learn the ropes.
Junior Level Questions
Q: What are the 11 Incoterms categories?
Expected Answer: Should be able to list the main categories (EXW, FCA, CPT, CIP, DAP, DPU, DDP, FAS, FOB, CFR, CIF) and understand they are grouped by mode of transport.
Q: What does EXW mean and when is it used?
Expected Answer: Should explain that EXW (Ex Works) means the seller only needs to make goods available at their premises, with the buyer responsible for everything else. Should give basic examples of when this might be used.
Experience Level Indicators
Junior (0-2 years)
- Basic understanding of main Incoterms categories
- Ability to process shipments using established Incoterms
- Document preparation for international shipments
- Basic cost calculations for different Incoterms
Mid (2-5 years)
- Strategic selection of appropriate Incoterms
- Risk assessment for different shipping terms
- Contract negotiation using Incoterms
- Training others on Incoterms basics
Senior (5+ years)
- Complex international shipping strategy development
- Cost optimization through Incoterms selection
- Risk management across global supply chains
- Policy development and implementation
Red Flags to Watch For
- Unfamiliarity with latest Incoterms 2020 updates
- Confusion between different shipping terms
- Lack of practical experience with international shipping documentation
- No understanding of cost implications for different terms
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