INCOTERMS 2010 will be updated to INCOTERMS 2020 which comes into effect on 1 January 2020. The main changes are as follows.
Under FCA if the parties agree, the buyer, at its cost and risk, must instruct the carrier to issue to the seller a transport document (e.g. a bill of lading with an on-board notation) stating that the goods have been loaded, which the seller must then provide to the buyer.
Under CIP sellers will need to obtain cargo insurance cover which complies with Clauses (A) of the Institute Cargo Clauses (LMA / IUA) which, subject to certain exclusions, cover “all risks”, subject to the parties’ right to agree to a higher or lower level of cover.
DAT (Delivered at Terminal) now becomes DPU (Delivered at Place Unloaded).
FCA, DAP, DPU now allow the Seller to use its own transport rather than using a third party carrier.
Security obligations are made more prominent.