A named port is the specific port inserted into a sea-transport Incoterms rule to identify a shipment or destination responsibility point. Its meaning depends on whether the rule names the port of shipment or destination.
Which rules use a named port?
FAS and FOB use a named port of shipment. CFR and CIF use a named port of destination, even though risk transfers at the shipment port.
Why is the distinction important?
A destination port in CFR or CIF states how far the seller pays freight; it does not move risk transfer to destination.
How specific should the port be?
State the official port and, where relevant, terminal, berth or delivery point. Large port complexes can have different handling costs and rules.
What should be checked?
Confirm carrier service, cargo compatibility, cut-offs, terminal charges, loading or unloading responsibility and customs arrangements.
How should the term be written?
Include the rule, port and version, such as “CIF Port of Manila, Incoterms 2020.”
