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Delivered ex-ship (DES) was an Incoterm that was originally developed by the International Chamber of Commerce (ICC) to clarify shipping responsibilities between buyers and sellers. This was a type of international commercial term that applied to both inland and international sea or ocean shipping, and was often used in charter shipping.
The essential meaning of the DES stipulated that a seller was obligated to deliver goods to a buyer in a specified port of arrival. It was the seller’s responsibility to ensure that the goods arrived at the specified port and all costs until the end of the voyage were also to be paid by the sellers.
The responsibilities associated with delivering goods under the DES term can include time-consuming and expensive processes before and during the transport such as loading and unloading cargo, paying customs and excise duties at the port of arrival and other activities like weighing and inspection. Once the shipment arrives at the port of arrival the responsibility, the risk and the costs of any additional transport to the ultimate destination then transfers to the buyer, as well as any additional costs and arrangements required including customs clearance, unloading and inland freight.
Unfortunately, the DES term was prone to considerable ambiguity. The defining factor of 'port of arrival' was not always adequately detailed in the contract, which could result in costly disputes, delays and other such complications. As a result, the ICC discontinued the DES term in 2011. This decision was due to the difficulty of implementation and monitoring the term, and was replaced by two new Incoterms – delivered at terminal (DAT) and delivered at place (DAP).
The DAT term encapsulates the entire responsibility associated with DES on the seller up until entering a terminal at the specific port. All costs and risks before entering the terminal remain the seller’s responsibility and the buyer must accept delivery of the goods at the terminal, including any costs associated with taking ownership and any port and customs handling activities.
Equally, the DAP term requires the seller to guarantee delivery of the goods to a particular location, which should be specified in the contract also. All costs and risks, including those related to maritime transport, inland transportation, port fees and clearance fees remain with the seller up until the goods are delivered to the agreed place at the port of destination.
The difference between DES, DAT and DAP is primarily the amount of responsibility of the seller and the complexity associated with each Incoterm. In general, it is most wise for all parties of an international shipping contract to agree in advance on which Incoterms to use, and attempt to define as precise an interpretation of each term as possible in order to avoid any ambiguities further down the line.
The essential meaning of the DES stipulated that a seller was obligated to deliver goods to a buyer in a specified port of arrival. It was the seller’s responsibility to ensure that the goods arrived at the specified port and all costs until the end of the voyage were also to be paid by the sellers.
The responsibilities associated with delivering goods under the DES term can include time-consuming and expensive processes before and during the transport such as loading and unloading cargo, paying customs and excise duties at the port of arrival and other activities like weighing and inspection. Once the shipment arrives at the port of arrival the responsibility, the risk and the costs of any additional transport to the ultimate destination then transfers to the buyer, as well as any additional costs and arrangements required including customs clearance, unloading and inland freight.
Unfortunately, the DES term was prone to considerable ambiguity. The defining factor of 'port of arrival' was not always adequately detailed in the contract, which could result in costly disputes, delays and other such complications. As a result, the ICC discontinued the DES term in 2011. This decision was due to the difficulty of implementation and monitoring the term, and was replaced by two new Incoterms – delivered at terminal (DAT) and delivered at place (DAP).
The DAT term encapsulates the entire responsibility associated with DES on the seller up until entering a terminal at the specific port. All costs and risks before entering the terminal remain the seller’s responsibility and the buyer must accept delivery of the goods at the terminal, including any costs associated with taking ownership and any port and customs handling activities.
Equally, the DAP term requires the seller to guarantee delivery of the goods to a particular location, which should be specified in the contract also. All costs and risks, including those related to maritime transport, inland transportation, port fees and clearance fees remain with the seller up until the goods are delivered to the agreed place at the port of destination.
The difference between DES, DAT and DAP is primarily the amount of responsibility of the seller and the complexity associated with each Incoterm. In general, it is most wise for all parties of an international shipping contract to agree in advance on which Incoterms to use, and attempt to define as precise an interpretation of each term as possible in order to avoid any ambiguities further down the line.