Incoterms 2010: a Consideration of Certain Implications of the Amendments to the Traditional Incoterms 2000

Abstract

One of the prominent features of maritime commercial activity is the use of Incoterms. Incoterms exist as a result of the International Chamber of Commerce’s endeavours to create uniform standard contracts which can be entered into by parties transnationally as part of commonplace global trade. It is therefore essential to explain in the South African context, some of the implications of such terms with particular reference to the recent amendments to the traditional list in Incoterms 2000. Incoterms were created as a result of orthodox commercial exigencies of the maritime industry. These exigencies included, for example, taking into account factors such as the commercial position of an importer (buyer) or exporter (seller). It is therefore consequential that the new Incoterms 2010 will naturally raise a useful enquiry as to the implications of its effects on future international trade. With factors such as significant drops in freight rates during the recent economic recession, it is imperative that an investigation into the amendment of terms be considered in order to determine whether or not the latest amendments to Incoterms provide the required support for sustainable imports and exports.