In polymer trading, the same material at the same headline price can cost very different amounts to land, depending on one three-letter code. Incoterms define who arranges and pays for transport, clearance and insurance, and where risk passes from seller to buyer. Quoting a polymer price without an incoterm is meaningless. This guide explains the terms you will actually meet.
Why do incoterms matter for a price per tonne?
A tonne of PVC at the factory gate and the same tonne delivered to your yard are different numbers, because someone has to pay for freight, export and import clearance, and insurance in between. The incoterm says who. When you compare two offers, you are only comparing like with like if the incoterm is the same — an EXW price and a DDP price on identical material are not comparable at face value.
What do the common incoterms mean?
- EXW (Ex Works) — the buyer collects from the seller's site and handles everything after. Lowest quoted price, most work and risk for the buyer.
- FCA (Free Carrier) — the seller loads the buyer's nominated carrier at a named place, cleared for export.
- FOB (Free On Board) — the seller delivers, cleared for export, onto the vessel at the named port. The classic sea-freight term.
- CFR (Cost and Freight) — as FOB, plus the seller pays freight to the destination port; the buyer covers insurance.
- CIF (Cost, Insurance and Freight) — as CFR, plus the seller arranges insurance to the destination port.
- DAP (Delivered At Place) — the seller delivers to a named place; the buyer handles import clearance and duties.
- DDP (Delivered Duty Paid) — the seller delivers everything, cleared and duties paid. Highest quoted price, least work for the buyer.
Which incoterm should I use?
It depends on your own freight capability and appetite for handling logistics, and it is a decision for you and your counterparty, not a fixed rule. In general, buyers with their own freight and customs arrangements favour EXW or FOB for control and price; buyers who want the burden with the seller favour CIF, DAP or DDP. What matters is that the term is written into the contract alongside quantity, grade, price and payment, so there is no ambiguity when the material moves.
How incoterms appear on a marketplace
On Prime Polymers, sellers state the incoterm their price is based on directly on each listing, next to the price, quantity and location. That lets you compare offers on the same footing and see immediately whether a price is ex-works or delivered. Our guide to sourcing polymers covers the wider deal mechanics — payment structure and counterparty checks — that sit around the incoterm. Prime Polymers is operated by ARC Polymers Ltd, a UK polymer trading company.
Frequently asked questions
- What is the difference between CIF and CFR?
- Both mean the seller pays freight to the destination port. Under CIF the seller also arranges insurance to that port; under CFR the buyer arranges its own insurance. Otherwise they are the same.
- What does EXW mean for a polymer price?
- EXW (Ex Works) means the price is for the material at the seller's site — the buyer collects and pays for all transport, export and import clearance and insurance after that. It is the lowest headline price but the most work and risk for the buyer.
- Is a delivered price better than ex-works?
- Neither is inherently better — it depends on whether you have your own freight and customs capability. Buyers with logistics arrangements often prefer EXW or FOB for control and price; those who want the seller to handle it prefer DAP or DDP. Compare offers on the same incoterm.
- Why is an incoterm needed on every polymer quote?
- Because it determines who pays for freight, clearance and insurance, which can change the landed cost per tonne substantially. A price without an incoterm cannot be compared or acted on reliably.