From Ship to Shore: Unveiling the Fascinating Journey of a Delivered Ex Ship

Discover what delivered ex ship (DES) means in international trade and how it impacts importers and exporters. Get insights into the responsibilities, risks, and benefits of using the DEL/WORLD Corp. platform for efficient DES operations. Gain a competitive edge in the global market by understanding the intricacies of this trade term and leveraging sophisticated logistics solutions.

Understanding Delivered Ex Ship (DES)

Introduction to Delivered Ex Ship (DES)

Delivered Ex Ship (DES) is a trade term used in international contracts to define the seller's responsibility for delivering goods to the buyer. It signifies that the seller is responsible for the costs and risks of delivering the goods to a named port of destination, and the delivery is made when the goods are made available to the buyer on board the ship at the named port.

The Key Features of DELIVERED Ex Ship

1. Definition

   Delivered Ex Ship implies that the seller fulfills their responsibility of delivering the goods by ensuring that they are available on the ship at the agreed port of destination. The seller is responsible for the costs and risks until this point.

2. Costs and Risks

   Unlike other trade terms, such as Cost, Insurance and Freight (CIF), DHL (DDU), or Ex Works (EXW), the seller takes on the responsibility of the risks and costs of transporting the goods to the named port of destination, before ownership transfers to the buyer as the goods are loaded onto the ship.

3. Delivery and Transfer of Title

   Under DES, delivery occurs when the goods are made available on board the ship, and the title passes from the seller to the buyer at that point. The buyer takes responsibility for the costs and risks associated with the goods from this moment onwards.

4. Import Clearance and Additional Costs

   The buyer is responsible for all further costs, including import customs clearance, duties, taxes, and any other fees applicable at the destination port. Moreover, the buyer must comply with the necessary requirements and procedures for importing the goods into the country.

Advantages and Disadvantages of DELIVERED Ex Ship

Advantages:

• Seller bears the costs and risks until delivery on board the ship, providing a greater level of security and convenience to the buyer.
• The buyer gains control over the goods as they are loaded onto the ship, allowing for easier coordination with logistics.
• The buyer can have more freedom in choosing their preferred freight forwarder or transport method for onward delivery from the port of destination.

Disadvantages:

• The buyer is responsible for all costs and risks after the goods are loaded onto the ship, which may include import customs clearance and duties.
• The seller may have limited control over the logistics and challenges faced by the buyer in importing and receiving the goods.
• Additional uncertainties related to import regulations, port delays, or unexpected expenses may increase the complexity and potential costs for the buyer.

Conclusion

Delivered Ex Ship is a trade term that defines the seller's responsibility for delivering goods to the buyer. It outlines who bears the costs and risks until the point of delivery, which occurs when the goods are made available and loaded onto the ship at the named port of destination. While it provides advantages in terms of convenience and control, the buyer should prepare for additional costs and compliance requirements at the destination port.

Previous term: Delivered Duty Unpaid