The past, today and future of incoterms in international delivery: A review on the innovations in logistics

Celil DURDAĞ, Gül Esin DELİPINAR

Abstract


Abstract. Incoterms; are the rules regulating the distribution of responsibilities and costs between the parties at the stages of transportation and delivery of goods, regulated by the International Chamber of Commerce. Incoterms items are expressed with abbreviations consisting of English definitions' initials. They provide a common language so that every company in a global world apprehends the same way of actions in distribution and transportation. Eventually, the firms deliver their products as expected. Incoterms mentions the changes in the abbreviations as well as the transactions. International commercial terms (Incoterms) have played an essential role in implementing global trade since 1936.  As the international commercial terms are updated every ten years, the companies are more likely to be affected by the innovations made in Incoterms. In the first part of this study, Incoterms are evaluated according to how it is changed from past to present in terms of quality and quantity. In the second part, the study continues with the evaluation of delivery terms and it is questioned if the changes in the logistics have a source effect on international trade. At the end of the study, implications are given on how changes in logistics can shape the future of international commercial terms.

Keywords: International logistics, International commercial terms (Incoterms), Delivery terms, International trade.

JEL. F02, F13, R42.

Keywords


International logistics; International commercial terms (Incoterms); Delivery terms; International trade.

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DOI: http://dx.doi.org/10.1453/jel.v7i4.2166

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