Choose the Incoterm, the payment terms and whether to insure - then watch a disruption strike one leg of the journey. Where risk transfers decides who eats the cost, and your cash exposure rides on the payment split.
An Incoterm defines the point along the shipment where cost and risk pass from seller to buyer. It shapes landed cost, who pays when a leg is disrupted, and - with payment terms - how much cash is exposed.
Each round you pick a term, an advance-payment split and whether to insure. A disruption strikes one leg; if it falls on a leg you bear (and you are uninsured), you pay. Score rewards low landed cost, low cash tied up and covered risk.
Push the handover later (CIF/DDP) or insure when transit risk is high; use EXW/FOB to avoid the seller’s margin when risk is low. Keep advance payments modest to limit cash exposure.
