LEO | YOUR FORWARD AGENT
EXW, FOB, DAP or DDP: Which Shipping Term Fits Your Shipment?
Choose a term by agreeing where delivery responsibility transfers and who handles each part of the shipment. Record the named place or port and the applicable Incoterms edition in the sales agreement. A three-letter term alone does not define every operational detail or the full freight quotation.
How do the four terms differ?
EXW starts at the seller’s named location. FOB is for sea or inland waterway transport and uses delivery on board at the named port. DAP and DDP describe delivery at a named destination, with different import responsibilities. Discuss the complete sales agreement with the trading parties.
Which operational questions should you resolve?
Write down the pickup location, loading responsibility, export handover, main transport scope, import arrangement and final receiving point. Ask whether quoted charges cover those tasks.
What if a supplier uses an unclear term?
Ask for the named place and a written description of the proposed handover. Compare it with the purchase agreement before arranging transport. Leo can help identify questions for the supplier and operational team.
Frequently asked questions
Can FOB be used for air freight?
FOB is a sea and inland waterway rule. Ask the trading parties to agree a term appropriate to the actual transport and handover.
Does an Incoterm set the freight price?
No. A separate quotation is needed for the agreed logistics scope.
Does DDP remove importing restrictions?
No. The import arrangement must still be feasible for the goods and destination.
What should follow the three-letter term?
A precise named place or port and the applicable edition, as agreed between buyer and seller.
Can Leo decide my sales contract for me?
Leo can help clarify logistics questions. The trading parties remain responsible for agreeing the contract.