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.
Related Terms§
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 🚢🤔§
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! 🌎⚓️
