International Business

What Does Delivered Ex Ship Mean

Incoterms are very abbreviated! Nowadays, there are so many commercial terms used mostly in international business. But, how many of them are we well conversant with? One of the popular commercial terms is Delivered Ex Ship (DES). What does it mean or what is the essence of this incoterm? No problem. Today, I am explaining the basic idea on this key commercial term for your easy understanding.

Delivered Ex Ship‘ [DES] means that the seller delivers when the goods are placed at the disposal of the buyer on board the ship not cleared for import at the named port of destination. The seller has to bear all the costs and risks involved in bringing the goods to the named port of destination before discharging. (Incoterms 2017)

The price quoted includes all expenses up to carriage of goods by ship to the named destination. Thus, the price quoted may be same as the price under CIF contract. But the essential difference between Ex Ship contract and other contracts discussed above is the time at which the risk for loss of or damage to the goods is passed to the buyer.

The responsibility under the Delivered Ex Ship contract, the seller is to make available to the buyer the goods at the named destination. Therefore, the risk is borne by the seller till the goods are carried to the port of destination. The risk is transferred to the buyer from the time he takes delivery of the goods. In other respects, the duties of the seller and the buyer are similar to those under the CIF contract.

Documents required under Delivered Ex Ship:

The following documents are to be submitted under Delivered Ex Ship contract:

(a) Freight paid bill of lading

b) Invoice

c) Insurance policy, and

d) Other documents as required by the buyer

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