[Tips] Incoterms, FOB Confusion, and Why Ex Works May Not Be as Easy as It Looks

In this episode of Simply Trade, host Lalo Solorzano is joined by Trudy Wilson, longtime Global Training Center instructor and trade compliance expert, for the first installment of what Lalo calls “Trudy’s Trade Tips.” This conversation focuses on a foundational topic that continues to create confusion across import and export teams: Incoterms 2020. Trudy breaks down why companies should not simply default to familiar terms like FOB or Ex Works, especially when containerized freight, export filing, loading responsibility, and risk exposure are involved. Key Takeaways Incoterms are voluntary, but they help buyers and sellers clearly define responsibility. There are 11 Incoterms, but most companies should focus primarily on the 7 “any mode” terms. FOB, CIF, CFR, and FAS are often misused when goods are moving in containers. “Ocean shipment” does not automatically mean one of the ocean-only terms applies. Ex Works may look simple for the seller, but it can create serious compliance and operational risk. Export filing, proof of export, loading responsibility, and product destination still matter. AI and automation can help, but trade professionals still need the foundation to validate results. Featured Discussion Trudy explains why the four sea and inland waterway terms should generally be reserved for goods that are “pumped or dumped” onto a vessel, such as oil, grain, minerals, or ore. For most containerized shipments, even when moving by ocean, companies should usually be evaluating the seven any-mode Incoterms instead. She also cautions against the casual use of Ex Works, reminding exporters that “easy” does not always mean low risk. Memorable Quote “If you don’t have the foundation right, you’re going to have issues with the tariffs anyway.” Hosts Lalo Solorzano Trudy Wilson About Simply Trade Simply Trade is a podcast by Global Training Center, created for trade compliance professionals, importers, exporters, customs brokers, and supply chain leaders who want practical conversations about global trade. 📢 Subscribe & Follow Stay connected with the Simply Trade community and never miss an episode that helps you trade smarter. 🎧 Listen on: Apple Podcasts Spotify YouTube 💬 Connect with us: Simply Trade on LinkedIn Global Training Center on LinkedIn Trade Geeks Community