If your business ships between Mexico, the USA, and Canada, understanding Incoterms (International Commercial Terms) is key to avoiding confusion, delays, and unexpected costs. These global trade terms define who is responsible for each part of a shipment — from pickup to delivery, including customs clearance.

At Mexicom Logistics, we help businesses like yours move goods seamlessly across North America with clear shipping terms and reliable cross-border services. This guide explains the 5 most common Incoterms – with simple explanations-, which ones apply to ground freight, and how you can simplify your cross-border logistics.

The 5 Most Common Incoterms

EXW – Ex Works (Applies to Ground Freight)

“You pick up the goods from my warehouse.”

The seller makes the goods available at their warehouse or facility. From there, the buyer arranges all transportation, export paperwork, and customs clearance.

• Seller’s job ends when the goods are ready for pickup.

• The buyer arranges transport, export paperwork, and delivery.

✅ Ideal when you control the logistics with your own Logistics Provider, like Mexicom  Logistics.

MODE: Common for ground freight and multimodal transport.

• 💬 Example: If your supplier in Canada agrees on EXW, you (or Mexicom Logistics) arrange pickup and transportation to your facility in Mexico.

FOB – Free On Board (Maritime Only)

“I load the goods onto the ship.”

The seller handles transport to the port and loading onto the ship. The buyer takes over once the goods are onboard.

• The seller delivers the goods onboard at the port.

• The buyer pays for ocean freight and takes over after loading.

✅ Fair for both sides

MODE: Standard for sea shipments. Not applicable for ground freight.

CIF – Cost, Insurance & Freight (Maritime Only)

“I’ll pay to ship and insure it to your port.”

The seller covers the cost of transportation and insurance to the destination port. The buyer assumes responsibility after arrival at the port.

• The seller covers cost and insurance until destination port.

• The buyer takes over after arrival at the port.

✅ More protection for the buyer//Seller pays upfront for shipping + insurance

MODE:
Applies only to sea freight.
Not relevant for cross-border trucking in North America.

DAP – Delivered at Place (Applies to Ground Freight)

“I’ll deliver the goods to your location — you handle customs.”

The seller is responsible for delivering the goods to a specific location (like the buyer’s warehouse). The buyer handles import duties, taxes, and customs clearance.

• The seller manages transport up to the buyer’s premises.

• The buyer takes care of customs clearance and duties.

✅ Reduces buyer’s transportation burden but keeps customs handling with the buyer.

MODE:
Ideal for cross-border ground freight in North America.

💬 With DAP, Mexicom Logistics delivers your goods across borders right to your facility.

 DDP – Delivered Duty Paid (Applies to Ground Freight)

“I’ll handle everything — transport, customs, and taxes.”

The seller takes on the most responsibility — covering transportation, customs clearance, duties, and taxes — delivering the goods straight to the buyer’s location.

• The seller takes full responsibility until delivery at the buyer’s place.

• The buyer just receives the goods — no extra paperwork.

✅ Easiest option for the buyer

MODE:

Applies to Ground Freight

💬 With DDP, Mexicom Logistics manages the entire supply chain, including cross-border formalities, ensuring a smooth delivery experience. Perfect when you want a hassle-free cross-border shipment.

Which Incoterms Apply to Ground Freight?

Why Choose Mexicom Logistics for Cross-Border Ground Transportation?

At Mexicom, we specialize in ground freight between Mexico, the United States, and Canada. Our team handles FTL, LTL, and cross-border shipments with full visibility and reliable service.

✔️ We help you move your freight door-to-door across borders.
✔️ We provide support with customs clearance and handle bonded cargo at FIRMS-coded facilities.
✔️ We deliver directly to your location throughout North America.

Ready to simplify your logistics between Mexico, the U.S., and Canada?

Contact us — Your Cross-Border Freight Partner: info@mexicomlogistics.com