Incoterms for cargo security

Since 9/11 and incidents such as the oil tanker bombing in the Gulf of Aden in 2002, cargo security is now high on the transport industry agenda.

The Incoterms 2020 edition analyses responsibilities by reference to activities associated with the export clearance process, the transport process and the import clearance process.

In practice, the most relevant security framework is often the International Ship and Port Security code ISPS Code, which is an amendment to the International Convention for the Safety at Sea (SOLAS).

Responsibility for security policy rests with designated persons both at the ship level and for shipping terminals. Carriers will often levy a small charge for security/ISPS, which will be borne by whoever contracts with the carrier.