Ex Works

Shippers are always looking for a great deal when it comes to international shipping. Sometimes, as a buyer, you might find a great deal on freight shipping from a seller. If that deal is labeled as Ex Works, then you should be warned about Ex Works is and how it will impact your shipment. Under traditional Ex Works conditions, the shipper only packages their goods and tells the buyer when the goods will be ready for pickup. Meanwhile, it is the buyer who must assume all of the responsibility for the shipment, including all of the transportation costs in an Ex Works deal.

From a buyer’s perspective, Ex Works means that the buyer must pay for all of the costs associated with transporting the freight from the seller, containerized, sent overseas and to the destination. Basically, the seller only assures that the product will be completed, and the buyer must handle everything else. And the responsibilities for the buyer in an Ex Works shipment means other responsibilities, including taxes, the cost to upload the cargo on a truck, clearance costs, the bill of lading, insurance and all of the risk. Often in an Ex Works shipment, the buyer works with a trusted freight forwarder who can give instant ocean freight quotes. In addition, many times this would also be considered to be paid via Freight Collect.

In the end, buyers must understand the responsibilities of an Ex Works shipment before agreeing to the terms. If coordinated correctly, then the container will arrive just fine at the destination.