Delivery method
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- EXW/FOB/CIF/DDP & More
- 98% On-Time Delivery for 50+ Countries
- Covering 7 international shipping terms, adaptable to logistics scenarios in 50+ countries including North America, Europe, the Middle East, and Southeast Asia.
- Customized door-to-door solutions including FOB Shanghai, CIF Los Angeles, and DDP Berlin.
- Full-process support services for customs clearance and sea/land freight.
- 12 years of cross-border logistics experience, 98% of bulk orders delivered on time.
custom metal products supplier
EXW (Ex Works)
Seller makes goods available at their premises (factory/warehouse); buyer handles all logistics, customs, and costs from pickup onwards.
- Risk Transfer: At seller’s facility (when buyer collects goods).
- Seller Duties: Package goods, provide access for pickup.
- Buyer Duties: Arrange transport (local + international), export/import clearance, insurance, and all fees.
- Buyers with established logistics networks; low-cost option for bulk steel or building materials.
FCA (Free Carrier)
Seller delivers goods to a named carrier (appointed by buyer) at seller’s premises or another specified location.
- Risk Transfer: When goods are handed to the carrier.
- Seller Duties: Export clearance, package goods, and deliver to the carrier.
- Buyer Duties: Arrange main transport, insurance, import clearance, and associated costs.
- Air freight or multi-modal transport; ideal for MEP equipment and time-sensitive shipments.
FOB (Free On Board)
Seller delivers goods on board a named vessel at a specified port of shipment (maritime transport only).
- Risk Transfer: When goods cross the ship’s rail or are loaded on board.
- Seller Duties: Export clearance, load goods onto the vessel, and cover local transport to the port.
- Buyer Duties: Arrange main maritime transport, insurance, import clearance, and destination fees.
- Sea freight shipments (e.g., containers of steel beams, reinforcing bars); popular for Chinese exports to North America/Europe.
CFR/CNF (Cost and Freight)
Seller covers cost of goods and main maritime freight; risk transfers when goods are loaded on board.
- Risk Transfer: On board the vessel (same as FOB).
- Seller Duties: Export clearance, load goods, arrange main transport, and pay freight fees.
- Buyer Duties: Purchase insurance, handle import clearance, and cover destination costs.
- Sea freight where buyer prefers to manage insurance; common for bulk construction materials.
CIF (Cost, Insurance, and Freight)
Seller covers cost of goods, main maritime freight, and minimum insurance (110% of invoice value).
- Risk Transfer: On board the vessel (same as FOB/CFR).
- Seller Duties: Export clearance, load goods, arrange transport/insurance, and provide insurance documents.
- Buyer Duties: Import clearance, cover destination fees, and extend insurance if needed.
- First-time importers or small-to-medium orders; hassle-free solution for MEP equipment exports.
DDU (Delivered Duty Unpaid)
Seller delivers goods to a named destination (e.g., buyer’s warehouse) without paying import duties or taxes.
- Risk Transfer: At the named destination (before unloading).
- Seller Duties: Arrange full transport (local + international), export clearance, and deliver to destination.
- Buyer Duties: Pay import duties/taxes, handle import clearance, and unload goods.
- Buyers who want control over duties; suitable for high-value industrial equipment.
DDP (Delivered Duty Paid)
Seller covers all costs and responsibilities, including delivery to buyer’s premises, import duties, and taxes.
- Risk Transfer: At buyer’s premises (after unloading).
- Seller Duties: Full transport, export/import clearance, insurance, duties, and delivery to final location.
- Buyer Duties: Only take delivery of goods (no additional costs).
- Buyers seeking a “turnkey” solution; high-risk for sellers due to duty calculation and local regulations.
How to Choose the Right Incoterm?
- Transport Mode: Use FOB/CFR/CIF for sea freight; EXW/FCA/DDU/DDP for air/land/multi-modal.
- Risk Tolerance: Sellers prefer EXW/FOB; buyers prefer DDU/DDP (less risk).
- Market Experience: New importers benefit from CIF/DDP; experienced buyers may choose EXW/FCA for cost savings.
- Product Type: Bulk goods (steel) often use FOB/CFR; high-value equipment (MEP pumps) may use DDP for safety.
Common Incoterms Mistakes to Avoid
- Vague Location: Always specify ports (e.g., “FOB Shanghai”) or addresses (e.g., “DDP Berlin Warehouse”) to avoid disputes.
- Ignoring Insurance: For FOB/CFR, buyers must purchase cargo insurance—don’t assume the seller covers it.
- Clearance Confusion: EXW requires buyers to handle export clearance (rarely feasible for new importers).
- Duty Miscalculations: DDP sellers must research destination country duties (e.g., EU CE marking, US tariffs on steel).
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