INCOTERMS® 2020 from the Perspective of Global Trade Transformation: An Assessment of International Trade Practices

This study evaluates Incoterms® 2020 within the context of the changing global trade environment and examines the legal, logistical, and commercial implications of the changes and clarifications introduced in the 2020 revision. Particular attention is given to the relationship between the rules and developments in global value chains, digitalization, and sustainability. The study adopts a narrative literature review design and comparatively evaluates academic studies, the Incoterms® 2020 rules, and relevant institutional sources through six interconnected analytical dimensions. The analysis distinguishes among rule-level provisions, literature-supported practical implications, and broader conceptual propositions requiring further empirical examination. The findings indicate that Incoterms® 2020 is characterized primarily by clarification, reorganization, and adaptation of existing rules rather than by the creation of new delivery terms. Key developments include the replacement of DAT with DPU, the additional on-board bill of lading mechanism under FCA, differentiated default insurance coverage under CIP and CIF, more explicit treatment of security-related obligations, and recognition of carriage by the parties’ own means of transport. The review further shows that these changes may improve contractual clarity and the allocation of responsibilities, but existing evidence is insufficient to attribute direct improvements in logistics efficiency, competitiveness, or supply-chain resilience to the 2020 revision itself. The study contributes an interdisciplinary framework that integrates legal, logistical, and international trade perspectives while distinguishing established rule changes from empirically supported implications and broader claims requiring further research.