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What are the different terms of delivery?

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What are the different terms of delivery?

Types of Incoterms

  • CIF (Cost, Insurance and Freight)
  • CIP (Carriage and Insurance Paid to)
  • CFR (Cost and Freight)
  • CPT (Carriage paid to)
  • DAT (Delivered at Terminal)
  • DAP (Delivered at Place)
  • DDP (Delivery Duty Paid)
  • EXW (Ex Works)

What is the difference between ex works and FOB?

What Do EXW and FOB Stand for? EXW stands for Ex Works, an incoterm whereby the buyer of a shipped product pays for the goods when they are delivered to a specified location. FOB, or Free on Board, instead shifts the responsibility of the goods to the buyer as soon as they are loaded onboard the ship.

What is the difference between CIF and Des?

DES – Delivered Ex Ship (named port of destination) The seller pays the same freight and insurance costs as he would under a CIF arrangement. Unlike CFR and CIF terms, the seller has agreed to bear not just cost, but also Risk and Title up to the arrival of the vessel at the named port.

What are FOB Incoterms?

Free on Board, or FOB is an Incoterm, which means the seller is responsible for loading the purchased cargo onto the ship, and all costs associated. The point the goods are safe aboard the vessel, the risk transfers to the buyer, who assumes the responsibility of the remainder of the transport.

What does ex works mean in Incoterms?

EXW, short for “Ex Works,” places most responsibility with the buyer. The seller is expected to have the goods ready for collection at the agreed place of delivery (commonly the seller’s factory, mill, plant or warehouse).

What is EXW FOB and CIF?

Generally, EXW is the cheapest and CIF is the most expensive. If two suppliers give you nearly identical prices but one quotes EXW shipping terms and the other quotes FOB or CIF, the second quote will cost you significantly less.

What is the difference between FOB and DDP?

FOB term is when the goods pass the ship’s rail, at the port of export (origin), and DDP term is when the goods are placed at the disposal of the buyer. Gap responsibilities between FOB and DDP term consists of: carriage charges, insurance, destination terminal charges, delivery to destination, and import duty & taxes.

What is DAF in export?

“Delivered at frontier” (DAF) is a term used in international shipping contracts that requires a seller to deliver goods to a border location. The seller is usually responsible for all costs of transporting the goods to the drop-off point for the buyer.

Is Des same as DAP?

DES stipulated that a seller had to deliver goods to a buyer at a certain port of arrival, as specified in an international shipping contract. After delivery, all obligations shifted to the buyer. Discontinued in 2011, DES was replaced by two new Incoterms, delivered at terminal (DAT) and delivered at place (DAP).