Overview
FOB (Free on Board) means the seller clears export and loads the vessel; you take over freight, insurance, and import. DDP (Delivered Duty Paid) keeps responsibility with the seller through delivery, including duties and taxes.
When to Use FOB
- You want carrier choice, negotiated rates, and lane control.
- You need accurate landed cost for margin planning.
- Compliance matters (e.g., certifications, labeling, batteries).
- You have a trusted forwarder who can manage customs and delivery.
When to Use DDP
- Small parcels or pilot orders where simplicity beats control.
- Destinations with complex last-mile or high residential deliveries.
- You lack freight support and need a single invoice.
Cost, Control, Risk
- Cost: FOB separates freight and duty; DDP bundles everything and can hide markups.
- Control: FOB lets you choose transit time, insurance, and visibility; DDP routes may change without notice.
- Risk: DDP can expose you to under-declaration or wrong HS codes; FOB puts compliance in your hands.
Decision Checklist
- Small, low-value shipments with simple labeling? DDP for convenience.
- Regular orders, higher value, or compliance-sensitive products? FOB for control.
- If you choose DDP, require a cost breakdown, confirm importer of record, and ensure HS codes and values match your invoice.
Need help benchmarking FOB vs DDP? Request a freight plan and we will quote both paths with transparent costs.