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International Journal of Creative and Open Research in Engineering and Management

A Peer-Reviewed, Open-Access International Journal Supporting Multidisciplinary Research, Digital Publishing Standards, DOI Registration, and Academic Indexing.
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ISSN: 3108-1754 (Online)
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License: CC BY 4.0
Peer Review: Double Blind
Volume 02, Issue 10

Published on: October 2026

A STUDY ON IMPACT OF INCOTERMS ON FREIGHT COST AND END-TO-END DOCUMENTATION

Samuel Fredrick Ebenezer S

DR.A.NARMADHA

Department of management studies, school of management studies, VISTAS

Article Status

Plagiarism Passed Peer Reviewed Open Access

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Abstract

International trade rests on a quiet but consequential piece of legal shorthand: the Incoterm. A three-letter code decides who pays for freight, who insures the cargo, who clears customs at either end, and who absorbs the cost when something goes wrong along the way. For a freight forwarder sitting between exporter and importer, that code is not background detail — it is the operating instruction for every shipment that crosses the desk. This article examines how Incoterm selection shapes freight cost predictability and documentation efficiency at 5 Way Logistics Solutions India Pvt. Ltd., a Chennai-based non-asset-based logistics provider, drawing on a structured survey of 60 employees across documentation, operations, customs clearance, sales and management functions, supplemented by a review of the branch's recent shipment mix. The analysis finds that origin- and freight-inclusive terms — FOB and CIF — dominate the company's portfolio, together accounting for over half of all shipments, while delivered terms such as DAP and DDP, though a smaller share of volume, are consistently associated with longer documentation turnaround, greater cost unpredictability, and higher perceived operational burden. Nearly two-thirds of respondents report recurring freight cost disputes traceable to Incoterm misinterpretation, and the Bill of Lading/Airway Bill and Certificate of Origin emerge as the documents most prone to delay or error. At the same time, a strong majority of staff believe that a clearly agreed Incoterm meaningfully improves cost predictability and reduces disputes, suggesting that the problem lies less in the Incoterms framework itself than in how consistently it is communicated and operationalised internally. The article concludes with a set of practical, low-cost interventions — an Incoterm-to-documentation checklist, pre-booking confirmation of terms, targeted training for newer and sales-facing staff, and a dedicated workflow for delivered-term shipments — that could measurably improve both cost predictability and turnaround time without requiring a change to the company's service model.

How to Cite this Paper

S, S. F. E. (2026). A Study on Impact of Incoterms on Freight Cost and End-To-End Documentation. International Journal of Creative and Open Research in Engineering and Management, <i>02</i>(10), 1-9. https://doi.org/10.55041/ijcope.v2i10.142

S, Samuel. "A Study on Impact of Incoterms on Freight Cost and End-To-End Documentation." International Journal of Creative and Open Research in Engineering and Management, vol. 02, no. 10, 2026, pp. 1-9. doi:https://doi.org/10.55041/ijcope.v2i10.142.

S, Samuel. "A Study on Impact of Incoterms on Freight Cost and End-To-End Documentation." International Journal of Creative and Open Research in Engineering and Management 02, no. 10 (2026): 1-9. https://doi.org/https://doi.org/10.55041/ijcope.v2i10.142.

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References

International Chamber of Commerce. Incoterms 2020 ICC Rules for the Use of Domestic and International Trade Terms.

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Vogt, J. & Davis, R. (2020). The State of Incoterm Research. | Stapleton, D. et al. (2014). Refining Shippers' Dyadic Responsibilities.

Hajdukiewicz, A. & Pera, B. (2020/2021). Incoterms in International Contracts. | Căruntu, C. & Lăpăduși, M. (2021). Incoterms 2020 and Missed Opportunities for the Next Version.

Unal, E. & Metin, I. (2021). Do Factors Affecting Incoterms Selection Differ for Exporters and Importers? LogForum. | Islam, S. et al. (2024). Optimising International Trade: Incoterms Selection by Exporters and Importers. Emerald.

OECD (2025). Trade Policy Paper No. 297: The Digitalisation of Trade Documents and Processes.

Directorate General of Foreign Trade (DGFT), Government of India — https://dgft.gov.in/ | Indian Customs — ICEGATE Portal — https://www.icegate.gov.in/

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  • •All submissions are screened under plagiarism detection.
  • •Review follows editorial policy.
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  • •Peer Review Type: Double-Blind Peer Review
  • •Published on: Oct 24 2026
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