Incoterms 2020
FOB vs DDP
Compare Free On Board and Delivered Duty Paid side by side: who pays freight, where risk transfers, and who clears customs.
| Field | FOB | DDP |
|---|---|---|
| Applies to | Sea and inland waterway only | Any mode, including multimodal |
| Risk transfers to buyer | When the goods are on board the vessel at the named port of shipment. | When the goods arrive at the named destination, ready for unloading. |
| Main carriage paid by | Buyer | Seller |
| Insurance | No party is obliged to insure. | No party is obliged to insure. The seller carries risk to destination and should insure. |
| Export clearance | Seller | Seller |
| Import clearance and duties | Buyer | Seller |
| Seller handles | Deliver the goods on board the vessel, cleared for export. | Everything, including import clearance and duties, delivered to the buyer’s place ready for unloading. |
| Buyer handles | Ocean freight, insurance, import clearance, unloading, and delivery. | Take delivery and unload. Effectively nothing else. |
| Best for | Traditional non-containerized sea trade with a clear on-board handoff. For containers, FCA is technically more appropriate. | Buyers who want zero import hassle. The seller must be able to clear customs in the buyer’s country. |
Fields that differ are highlighted in teal. General guidance only, not legal advice. Your sales contract governs. Based on Incoterms 2020.
FOB vs DDP questions
Pick the right term, then track what it costs
Cargizon tracks every shipment and checks each freight invoice against your rate card, so wrong charges get flagged before you pay. Start free.