Incoterms 2020
FOB vs EXW
Compare Free On Board and Ex Works side by side: who pays freight, where risk transfers, and who clears customs.
| Field | FOB | EXW |
|---|---|---|
| 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 are placed at the buyer's disposal at the seller's premises, not loaded onto the collecting vehicle. |
| Main carriage paid by | Buyer | Buyer |
| Insurance | No party is obliged to insure. | No party is obliged to insure. The buyer bears risk from the seller's premises and should arrange cover. |
| Export clearance | Seller | Buyer |
| Import clearance and duties | Buyer | Buyer |
| Seller handles | Deliver the goods on board the vessel, cleared for export. | Make the goods available at their own premises. This is the seller’s minimum obligation. |
| Buyer handles | Ocean freight, insurance, import clearance, unloading, and delivery. | Everything else: loading, export clearance, main carriage, insurance, import clearance, and delivery. |
| Best for | Traditional non-containerized sea trade with a clear on-board handoff. For containers, FCA is technically more appropriate. | Buyers with their own logistics who want maximum control. Note that putting export clearance on the buyer is awkward, so FCA is often preferred. |
Fields that differ are highlighted in teal. General guidance only, not legal advice. Your sales contract governs. Based on Incoterms 2020.
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