Trade Terms 101: Know Before You Ship: How Understanding Incoterms Can Protect Your Business
As global trade opportunities open up for small businesses and entrepreneurs, understanding how to navigate international shipping becomes essential. That’s why Black Tech Link partnered with Emmanuel Harris, CEO of 1980 Freight, to demystify one of the most critical (yet overlooked) tools in global commerce: Incoterms.
In this comprehensive virtual workshop, participants learned how to ship smarter—not harder—by understanding who pays for what, when risk transfers from seller to buyer, and what every entrepreneur needs to know to avoid expensive errors in import/export.
Why Incoterms Matter
Short for International Commercial Terms, Incoterms are the standardized trade terms that tell buyers and sellers exactly who is responsible for shipping, insurance, customs, and risk at each step of the supply chain.
Whether you’re importing PPE, exporting handmade goods, or moving industrial equipment, Incoterms determine:
Who pays for freight and insurance
When the risk of damage or loss shifts to you
How to prepare contracts and shipping documents correctly
“One thing Google or ChatGPT can’t give you is experience,” Harris shared. “You need to understand where the risk lies—and how much it’s going to cost you.”
Breaking Down the Most Common Incoterms
While there are 11 official Incoterms, Emmanuel focused on the top few every small business should recognize:
EXW (Ex Works): Buyer takes on all costs and risks from the seller’s door onward
FOB (Free On Board): Seller gets it to the ship; buyer covers freight and risk from there
DDP (Delivered Duty Paid): Seller handles everything, including duties and delivery
CIF (Cost Insurance Freight): Seller pays freight and insurance until goods hit the port
He also explained how choosing the right Incoterm could save you thousands—or cost you just as much if done wrong.
“DDP is your friend if you’re just getting started,” said Harris. “It gives you peace of mind and minimal risk.”
Real Advice from the Field
Emmanuel, who runs multiple logistics-related businesses under the 1980 Companies umbrella, didn’t just stick to theory. He provided live examples of real-world shipping documents, shared what to look for when reviewing rate sheets, and offered advice for startups seeking to launch in freight, trucking, or medical transport.
He even discussed the differences between multimodal vs. intermodal shipping, and when to use freight forwarders or customs brokers to simplify the process.
Getting Support to Export Smarter
Black Tech Link’s Export Readiness workshops are funded by the California Governor’s Office of Business and Economic Development (GO-Biz) and designed to help underrepresented entrepreneurs confidently expand into international markets.
By connecting small businesses to industry experts like Emmanuel and offering free consulting and training, Black Tech Link is building a pipeline of BIPOC-owned businesses ready to compete in global supply chains.
“No matter how big or small your business is, you can export,” Elizabeth Cotton said. “You just need the right knowledge and the right support system.”
Want to Join the Movement?
If you’re a small business or nonprofit looking to grow, modernize, and get connected to real opportunity—Black Tech Link is here for you.
➡️ Visit blacktechlink.org
📌 Click on the Small Business Mastery Program
🗓️ Book a free session by hitting Talk With an Expert
Your mission deserves to thrive. Let’s make that happen—together.