A delivery term is more than a line in the proforma. It fixes where cost, risk and the right to choose the carrier pass from seller to buyer.
What a delivery term actually settles
Incoterms settle three things: who pays for each segment of the journey, at what point the risk of loss or damage transfers, and who is responsible for documents and permits at each stage. Most seller-buyer disputes come from reading those three points differently.
Why carrier choice matters
Under C-terms such as CFR and CIF the seller books the main carriage. The buyer has no control over the shipping line, the discharge port or the release conditions of the bill of lading, yet carries the destination costs and delay risk. Under F-terms such as FOB the buyer nominates the carrier and can compare rates and schedules.
A note on destination charges
The freight quoted in a proforma is rarely the real cost. Terminal handling, local charges, potential demurrage and inland haulage all belong in the landed-cost calculation. Comparing two offers on different delivery terms without converting them to a common basis will mislead you.
A practical suggestion
Before approving a proforma, state the delivery term, the exact port or place of delivery, who bears destination charges, and how documents will be released. Amending a phrase in the proforma is far easier than resolving a dispute once the cargo has arrived.
