Transportation represents one of the most basic functions of logistics.The delivery of clothing and textile goods will generally take place with one or more of the following modes of transportation: roads, railways, air and water.Businesses throughout the world have agreed upon a set of codes to describe whether the buyer or the supplier will pay for shipping costs, insurance and other charges related to the delivery of shipment from seller to buyer.The most common of thesecodes / acronyms established by the International Chamber of Commerce (called INCOTERMS) are:

FOB - Free on Board (Toronto) means the seller must, at its expense, load the goods onto a ship or other water-based freight vessel for delivery to the buyer.The seller is responsible for clearing the goods for export while the buyer is responsible for all import permits, levies and tariffs. FOB applies to waterway transport only. When choosing an Incoterm it is necessary to state a city or port beside the term; FOB Toronto means the seller pays for loading and for the shipping costs for delivery of goods to Toronto and the buyer is required to pay the cost of insurance and the costs of unloading and transporting the goods from Toronto's port to the final destination.

EXW - Ex Works (Naples) The seller will make the finished goods available for pick up at its warehouse in Naples. The buyer is responsible for uploading the shipment onto its own trucks and all other logistics. This term places the maximum obligation on the buyer and minimum obligations are on the seller. The Ex Works term is often used when making an initial quotation for the sale of goods without any transportation costs included.

FCA - Free Carrier (Toronto) means the seller will deliver goods, cleared for export, to the buyer-designated location. FCA can be used for any mode of transport. The seller must load goods onto the buyer's carrier. Buyers love this option because the seller is picking up almost all of the shipping and insurance costs.

CFR - Cost and Freight (Toronto) means the Seller must pay the costs and freight to bring the goods to Toronto.The Buyer is responsible once the goods are loaded onto the vessel so the cost of Insurance is at Buyer's expense.Maritime transport only.

CIFTorontomeansthe same as CFR but Cost, Insurance and Freight will be paid by Seller up to Toronto.The seller will also obtain and pay for the insurance and the freight charges up to Toronto.

What IncoTerm ( FOB, EXW, FCA, CFR, CIF) will likely be used by Canada Goose when it purchases raw materials from a supplier in Alaska for delivery to its Toronto warehouse?