Money is earned from correct use of international commercial shipment terms (Incoterms) in international sales.  Their proper use can increase profits, save foreign exchange and improve competitiveness of export goods. If for instance, Kenyan traders contracted CIF for Exports and FOB for imports, the following benefits will arise:

• Development of local transport and insurance sectors.
• Increased revenues for the State budget via taxes on transport and insurance services.
• Creation of job opportunities in local companies.
• Reduced expenses in foreign currency improving thus external trade balance.

• Discounts on freight and insurance rates given to regular/quantity importers/exporters resulting in improved profit.
• Foreign exchange savings accruing from transacting freight and insurance in local currency.
• Easier processing of insurance claims.
• Freedom to choose a carrier offering the most suitable terms.
• Freedom to procure the most suitable insurance cover for CIF exports and FOB imports thereby controlling premium cost.
• Provision of all facts and an optimistic viewpoint of the risk leading to a more realistic assessment of the premium.
• Assurance to the exporter of goods sold under extended payment terms that the insurance cover for the financially at risk has actually been arranged.
• Assurance that the goods will not be held by transporter for non-payment of freight.
• Freedom to change supplier for FOB import without necessarily cancelling the transport contract, leaving no bad effects on his import plan.
• Freedom to change buyer for CIF export, after delivering goods on board if the exporter suspects insolvency or any other problem with the buyer.
• An opportunity to sharpen skills, knowledge and experience in import-export transactions and also in dealing with transport logistics and insurance suppliers.