FOB vs EXW: Key Differences Explained
Alan Fan
Last Update il y a 2 mois
When you're shipping goods internationally, understanding trade terms is honestly crucial. Two of the most widely used Incoterms are FOB (Free On Board) and EXW (Ex Works)—and picking the right one can really affect your costs and responsibilities.
EXW (Ex Works)
EXW puts almost all responsibility on the buyer. The seller just makes the goods available at their location.
From there, the buyer does everything: loading, inland transport, export customs, freight, and delivery. It's simple for sellers, but honestly, it can get overwhelming for buyers who aren't used to managing logistics.
FOB (Free On Board)
FOB gives the seller more to handle. The seller delivers the goods to the named port and loads them onto the vessel.
Once the goods are on board, the risk passes to the buyer. After that, the buyer takes care of ocean freight, insurance, and import duties—so it's a bit of a handoff moment.
Key Differences at a Glance
| Factor | EXW | FOB |
|---|---|---|
| Risk Transfer | At seller's facility | On board the vessel |
| Export Clearance | Buyer | Seller |
| Best For | Experienced buyers | Most importers |
Which Should You Choose?
FOB usually makes more sense for most importers. It gives you more control, but you don’t have to deal with the headaches of handling export logistics in another country.