Delivery Methods Incoterms

1. DELIVERY / EX WORKS (EXW)

 

Delivery at the named workplace. “Ex works” means that the seller fulfills his delivery obligation by keeping the goods ready for the buyer's order in his facility (factory, warehouse, workshop, warehouse, etc.). The seller is not responsible for loading the goods on a vehicle provided by the buyer or clearing the goods through export customs, unless otherwise agreed. The buyer bears the responsibility for all expenses and risks related to the transportation of the goods from this point to the destination. All expenses and risks after delivery belong to the buyer. This term is a form of sales that involves the least liability for the seller among all forms of sales. Only the cost of packaged goods is included in the sales price specified in the contract upon delivery. All transportation, loading, unloading and insurance costs are paid by the buyer from the date of delivery.

 

2. DELIVERY ON BOARD / FREE ALONGSIDE SHIP (MOROCCAN)

 

Delivery alongside the ship at the named port of loading. This term is used in maritime transportation. The seller's delivery obligation ends when the goods are placed on the dock or barge in line with the ship at the designated port. This means that from this moment on, all risks of expense, loss or damage related to the goods are assumed by the buyer. Loading, unloading, transportation and insurance costs of the goods are paid by the buyer. The sales price specified in the contract includes both the cost of the goods and the transportation fee to the dock. The buyer must clear the goods from customs for export.

 

3. DELIVERY ON BOARD / FREE ON BOARD (FOB)

 

Delivery on the named ship deck. This term applies to international ports. The seller's delivery obligation is fulfilled from the moment the goods open the ship's rail at the designated loading port. All expenses (freight) and risks of loss or damage related to the goods are assumed by the buyer from this point on. The seller must notify the buyer that the goods have been loaded with all the details. The buyer's responsibility is to conclude a transportation contract at his own expense for transportation from the specified loading port and to undertake all kinds of loss and damage related to the goods from the moment the goods are delivered on the ship until the goods reach the destination.

 

4. DELIVERY TO CARRIER (FCA)

 

Delivery to the carrier, at the named place. The seller's delivery obligation ends when the goods are passed through export customs and delivered to the carrier determined by the buyer at the specified place or point. If an exact delivery place is not specified by the buyer, the seller can determine a place around the place where the carrier will receive the goods. Freight, risk and all expenses belong to the buyer. If commercial practices require the sales assistance to conclude a contract with the carrier (for example, in rail and air transportation), the seller may act at the buyer's risk and expense.

 

5. COST AND FREIGHT (CFR)

 

Delivery freight prepaid (goods + freight) at the named port of destination. The seller must pay all expenses and freight necessary to send the goods to the designated port of destination. However, the risks of loss or damage to the goods and the increase in expenses are transferred from the seller to the buyer from the moment the goods pass the ship's rail at the loading port. The term CFR indicates that the seller must clear the goods for export.

 

6. DELIVERY WITH TRANSPORTATION FEE PAID / CARRIAGE PAID TO (CPT)

 

Delivery, freight prepaid, to the named destination. It means that the seller pays the freight required to transport the goods to the agreed destination. The risks of loss and damage to the goods, as well as any additional costs that may arise from delivery to the carrier, are transferred from the seller to the buyer as soon as the goods are handed over to the carrier. The seller will provide the buyer with the necessary information for the purpose of insuring the goods.

For a better logistics experience, get a quote from our expert.

Go beyond boundaries while carrying your big ideas.