The quick guide below explains what it means to trade on EXW shipping terms, including when the risk, cost and ownership transfer from seller to buyer.
A number of trading terms have been defined within international commerce, also known as Incoterms. The development of these 11 Incoterms have undoubtedly been a smart move, as they give us an international standard on trading terms. In other words, because of the Incoterms, we always know exactly who needs to pay for what in a given trade.
EXW or Ex Works is one of these trading term, defining exactly when the ownership, the risk and the cost of a product transfers from a seller to a buyer in international trade.
When you agree to trade on EXW shipping terms, the ownership of a product is transferred at the address of the seller, making you responsible for all steps of the transport process.
EXW quick guide
In this video Transporteca's Founder and CEO, Morten Laerkholm, explains the essentials of trading on EXW shipping terms.
In practice, this means that when you select EXW shipping terms on Transporteca, the prices you see on the screen includes all transport costs from the shipper’s address at origin to your address at destination. This includes collection of cargo, local charges, sea freight/air freight/rail transport, local charges at destination and delivery. It even includes the export clearance at origin and the import clearance at destination – and thereby gives you the complete overview of your total landed cost.
For more information on EXW shipping terms, check out our post on what to be aware of when choosing between FOB and EXW. We have also written a post on the trading term EXW without pickup, which might be a beneficial import solution for you, if your supplier is willing to handle the local transport.
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