Definition of Delivered Ex-Ship (DES)
Delivered Ex-Ship (DES) is an Incoterm which stipulates that the seller delivers goods to a buyer at an agreed-upon port of arrival. Full responsibility for costs and risks of shipping rests with the seller until the goods reach that port. After unloading, the responsibility flips to the buyer, making them responsible for all subsequent costs and risks.
DES vs DAP Comparison
| Feature |
Delivered Ex-Ship (DES) |
Delivered at Place (DAP) |
| Responsibility for Costs |
Relieved at port of arrival |
Until goods are ready for unloading at the buyer’s premises |
| Risk Transfer |
At port of arrival |
At buyer’s premises |
| Applicability |
Both inland and sea shipping |
Primarily used for deliveries outside the port |
| Year Discontinued |
2011 |
Ongoing |
Example
Imagine you ordered a fancy new yacht. Under DES, the seller covers all shipping costs and risks until that yacht arrives at the busy docks of your chosen port. Upon its grand arrival, it’s party time! However, once the yacht is offloaded, you’re responsible for the costs of docking and keeping the seagulls from taking it for a joyride.
Incoterms
Incoterms (International Commercial Terms) are standardized contractual terms that clearly define the responsibilities of sellers and buyers in international shipping. They were formulated by the International Chamber of Commerce.
Delivered at Terminal (DAT)
Abandoned in favor of DAP in 2010, DAT defined that sellers were responsible for all risks and costs until delivery at a named terminal.
Delivered at Place (DAP)
A 2011 update in Incoterms that requires the seller to cover shipping costs and risks up to the buyer’s location (e.g., your driveway).
Humorous Quotes and Insights
- “A ship in a harbor is safe, but that’s not what ships are built for.” – John A. Shedd
- Fun Fact: Delivered Ex-Ship, or DES, sounds like a cool name for a ship, but it only means your stuff won’t be sailing back to the original sender!
Frequently Asked Questions
Q: Why was Delivered Ex-Ship (DES) discontinued?
A: Because the shipping world felt it was time for a makeover! The terms were restructured to clarify responsibilities, giving rise to DAP and DAT.
Q: Who is responsible for insurance under DES?
A: The seller must have insurance during transit but beware, once it lands on the dock—it’s all yours!
References and Further Reading
- Incoterms 2020
- Incoterms® 2020: ICC Rules for Use of Domestic and International Trade Terms by ICC
- International Business: Competing in the Global Marketplace by Charles W.L. Hill
Test Your Knowledge: Delivered Ex-Ship Trivia Challenge 🚢🤔
## What does DES stand for in international shipping terms?
- [x] Delivered Ex-Ship
- [ ] Delivered Extremely Slow
- [ ] Distance Excluded Shipping
- [ ] Dangerous Emergency Shipping
> **Explanation:** DES clearly stands for Delivered Ex-Ship—not an emergency situation!
## What is the main responsibility of the seller under DES?
- [x] Deliver goods to the agreed port
- [ ] Unload the goods at the buyer’s home
- [ ] Pay for the buyer's new fishing gear
- [ ] Handle customer service calls
> **Explanation:** The seller's duty is strictly to deliver the goods at the designated port—fishing gear advice is not included!
## When does the risk shift from seller to buyer in DES?
- [ ] After paying for the yacht
- [x] At the port of arrival
- [ ] When the boat ride begins
- [ ] As soon as the invoice is emailed
> **Explanation:** Risk and ownership are transferred at the port of arrival, not at the point of payment!
## What year was Delivered Ex-Ship (DES) officially discontinued?
- [ ] 2000
- [ ] 2008
- [x] 2011
- [ ] 2015
> **Explanation:** DES sailed off into the sunset in 2011, allowing new terms to come on board!
## Which two terms replaced DES?
- [ ] Delivered Best Price (DBP) and Delivered to Door (DTD)
- [] Delivered at Sea (DAS) and Delivered at Terminal (DAT)
- [ ] Delivered at Home (DAH) and Delivered by drones (DBD)
- [x] Delivered at Terminal (DAT) and Delivered at Place (DAP)
> **Explanation:** The replacement terms for DES were DAT and DAP - not your home delivery service!
## What is one advantage of using DAP over DES?
- [ ] DAP comes with free snacks
- [x] Clearer responsibilities regarding unloading
- [ ] DAP stands for "Delivered Absolutely Perfect"
- [ ] DAP provides a concierge with every order
> **Explanation:** DAP provides a clearer breakdown of who is responsible for what, ensuring no snack confusion!
## Is the seller responsible for insurance in a DES agreement?
- [x] Yes, until the goods arrive
- [ ] No, the buyer handles all risks
- [ ] Only if they feel like it
- [ ] Yes, but only on weekends
> **Explanation:** The seller is indeed responsible for insurance until the goods arrive at the port. No weekend exemptions!
## When using DAP, where do seller obligations end?
- [ ] At the buyer’s mailbox
- [x] At the buyer's specified location
- [ ] Halfway to Mars
- [ ] At a pub because the work is done!
> **Explanation:** Under DAP, seller responsibilities end at the buyer's specified location—no pit stops at pubs needed!
## Does DES involve responsibilities after goods are unloaded?
- [ ] Yes, it’s like a never-ending game of tag
- [x] No, after unloading responsibilities pass to the buyer
- [ ] Only if the goods are a surprise gift
- [ ] Yes, unless it rains
> **Explanation:** After unloading the goods, the buyer takes on responsibilities, leaving the seller off the hook!
## Can you use DES for both sea and inland shipping?
- [x] Yes, it applies to both
- [ ] No, it's strictly for planes
- [ ] Only for ocean cruises
- [ ] Desert deliveries only
> **Explanation:** DES effortlessly crosses both realms of shipping, making it quite the multitasker!
Thank you for sailing through the waters of Delivered Ex-Ship (DES) with us! Remember, maritime logistics can be fun if you keep your sense of humor while engaging in commercial trade. Keep on trading, and may your cargo always be in your favor! 🌎⚓️
