What is DES (Delivered Ex Ship)?

DES, short for Delivered Ex Ship, is an international trade term used in shipping and logistics. It refers to an agreement between the buyer and seller where the seller is responsible for delivering the goods to a named port of destination, but the risk and responsibility transfer from the seller to the buyer when the goods are unloaded from the vessel at the destination port.

1. What is DES (Delivered Ex Ship)?

DES (Delivered Ex Ship) is a trade term that specifies the seller's responsibility for delivering goods to a named port of destination. In this arrangement, the seller bears all risks and costs associated with transporting the goods to the destination port, including export duties, freight charges, and customs clearance. The buyer becomes responsible for the goods once they are offloaded from the vessel at the destination port.

2. Why is DES (Delivered Ex Ship) important?

DES is important for international trade transactions, especially when the buyer wants the seller to handle the transportation logistics. It allows both parties to clearly define their responsibilities and liabilities during the shipping process. For buyers, DES provides greater control over the shipping process and ensures that goods are delivered to the desired port. For sellers, it offers a competitive advantage by providing a comprehensive service that includes transportation to the destination port.

3. The Process of DES (Delivered Ex Ship):

Step 1: Agreement on Terms: The buyer and seller agree on the terms of the sale, including the specific goods, quantity, price, and delivery terms. DES is chosen as the delivery term, indicating that the seller will deliver the goods to the destination port.

Step 2: Seller's Responsibilities: The seller is responsible for arranging transportation to the named port of destination. This includes preparing the goods for export, booking cargo space on a vessel, and ensuring compliance with export regulations.

Step 3: Transportation: The seller transports the goods to the destination port via sea freight. The seller bears all costs and risks associated with the transportation process, including freight charges, insurance, and customs clearance.

Step 4: Arrival at Destination Port: Upon arrival at the destination port, the seller is responsible for unloading the goods from the vessel and arranging for their delivery to the buyer's designated location within the port area.

Step 5: Transfer of Risk: The risk and responsibility for the goods transfer from the seller to the buyer once the goods are offloaded from the vessel at the destination port. From this point onward, the buyer assumes responsibility for any loss or damage to the goods.

4. Considerations for DES (Delivered Ex Ship):

Insurance: While the seller is responsible for insuring the goods during transit, buyers may opt to purchase additional insurance coverage to protect against unforeseen risks.

Customs Clearance: Both parties should ensure compliance with customs regulations at the destination port to avoid delays or penalties.

Documentation: Accurate documentation, including the bill of lading, commercial invoice, and packing list, is essential for smooth customs clearance and delivery.

Communication: Open communication between the buyer and seller is crucial to ensure that the shipping process proceeds smoothly and any issues are addressed promptly.

In conclusion, DES (Delivered Ex Ship) is a trade term that defines the seller's responsibility for delivering goods to a named port of destination. By understanding the process and considerations associated with DES, both buyers and sellers can effectively manage their international trade transactions and mitigate risks.