DPU and FOB under Inco terms 2020

FOB vs. DPU under delivery rules for movement of goods

Delivered at Place Unloaded to a named place and Free On Board  at a named place are the two of eleven delivery rules for movement of goods under Incoterms 2020.

Let us compare both DPU and FOB delivery terms under Inco terms

First of all, FOB rule is meant for movement of goods  on waterways, as it is known as Marine restricted mode of transport  whereas DPU rule  may be used for  movement of goods by Air, Sea or Land.

Secondly, the delivery of goods under FOB ends at Seller’s side but under DPU, delivery of goods ends at buyer’s side.

Under FOB rules, main carriage is undertaken by the buyer whereas main carriage is under the responsibility of the seller under DPU terms.

Under DPU rules of delivery under Inco terms, the seller is responsible to arrange on carriage wherein FOB terms of delivery, the on carriage is under the risk and cost of Buyer.

Since the exporter holds the control over main carriage, under DPU rules of delivery, buyer depends upon the seller for export data and cargo movement details.  However, such challenges will not be faced  under FOB terms of delivery for the buyer.

High risks are undertaken by the seller under DPU terms which includes the responsibility of costs and risks to unload the goods at buyer’s named place.  However, under FOB, the seller holds minimum risks and costs which ends in Seller’s country itself. 

We have written  about FOB and DPU separately  in this website, you may click below to read:

FOB  Free On Board

DPU  Delivered at Place Unloaded

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