Delivery terms determine who pays for freight, insurance, and customs — and who carries the risk. Choosing wrong can add thousands in unexpected costs.
FOB (Free On Board)
With FOB, the seller delivers goods onto the vessel at the port of origin. The buyer owns the goods at that point and pays ocean freight, insurance, and destination costs. FOB gives buyers maximum control but requires handling logistics yourself.
DAP (Delivered At Place)
Under DAP, the seller pays for transport to the named destination, but the buyer handles import clearance and pays duties. A good middle ground for importers with customs experience.
DDP (Delivered Duty Paid)
DDP is the most buyer-friendly term: the seller handles everything — freight, insurance, customs clearance, and duties — and delivers to your door. You pay one landed price with minimal risk.
Which Should You Choose?
- FOB — you have a freight forwarder and want lower unit costs
- DAP — you can handle customs but want simpler freight
- DDP — you want certainty, one price, and no customs hassle
Many first-time importers start with DDP to learn the market, then move to FOB as volumes grow. Ask our team to quote your product DDP vs FOB.