Shipping
Shipping is not as simple at it might seem. First, there is only one worldwide standard, the INCOTERMS 2010. Except for the United States, the rest of the entire world uses INCOTERMS 2010 for shipping. The International Chamber of Commerce publishes the INCOTERMS every 10 years. The latest version of the INCOTERMS was published in 2010, this “INCOTERMS 2010.”
Second, in the U.S., most people use the outdated UCC shipping terms. The UCC removed its shipping terms a few years ago. Domestically, “FOB” by itself has always been meaningless.
You have two choices with shipping terms: 1) use INCOTERMS 2010, or 2) use simple language to describe everything that will happen during shipping. The best approach is to use language. Very few Americans actually understand shipping terms, so the safest bet is to use language.
| Topic | Purpose | UT's preference | Other acceptable options |
|---|---|---|---|
| Point where UT takes title. | Moment in time and precise location where UT takes title to (i.e. owns) the goods. | When UT physically receives the goods. | Any other location or time. |
| Point where UT assumes risk of loss. | Moment in time and precise location where UT assumes risk of loss. | When UT physically accepts the goods. | Any other location or time. |
| Insurance | Insure goods against damages. | Optional. UT prefers when the item is more than $10,000. Most departments assume their shipments are insured. | |
| Carriage | Who arranges shipping | Seller. | UT or third-party. |