Reference
FOB and DDP: where responsibility changes hands
Most of the arguments about freight are not about freight. They are about a line in the quote that neither side read the same way. This page is the division, cost by cost, and the two places quotes usually surprise a buyer.
The division
Who pays for what
| Cost | FOB | DDP |
|---|---|---|
| Goods and export packaging | Seller | Seller |
| Inland haulage to the port of loading | Seller | Seller |
| Export clearance and origin documentation | Seller | Seller |
| Loading on board the vessel | Seller | Seller |
| Main carriage (ocean or air freight) | Buyer | Seller |
| Cargo insurance | Buyer | Seller, unless the quote says otherwise |
| Import clearance, duty and tax | Buyer | Seller |
| Delivery from destination port to your door | Buyer | Seller |
Standard Incoterms mechanics. The named place and the exact inclusions for your order are stated in the quote, not on this page.
Where quotes surprise people
Two lines to read twice
An FOB quote that stops at the gate
FOB means the goods are on board. It does not mean the origin charges are included. Terminal handling, documentation and any security filing can sit outside an FOB figure and reappear on your forwarder's invoice.
Ask: does this FOB number include origin charges, or only the goods to the port?
A DDP quote with no named place
DDP is always "DDP to somewhere". A figure quoted as DDP with no destination named cannot be compared with another DDP figure, because the last mile and the duty base are both undefined.
Ask: DDP to which address, and is duty calculated on the same HS code in both quotes?
What we publish
What we quote, and what is stated where
- FOB and DDP to 15+ countries. Which one applies, and to which address, is stated in the quote rather than assumed.
- The named place goes in writing. A DDP figure without a destination address is not a comparable number.
- Freight is quoted at a conservative figure, not a teaser. A freight number that turns out to be short becomes a conversation at the worst moment, so it is not discounted to win the order.
- Duty is the part that moves. Classification and rates change by market; the quote states the basis it was calculated on.
Ask for both, to a named address
Send the destination postcode and the quantity, and the reply carries FOB and DDP side by side, with the named place written out.