FOB vs EXW: which Incoterm suits your first export order?

Incoterms are standard trade terms published by the International Chamber of Commerce. They define who arranges transport, who pays for what, and where risk passes from seller to buyer.

EXW

Under EXW the seller's obligation ends once goods are available at their premises. The buyer arranges export clearance, inland transport and loading, which can be difficult for first-time buyers.

FOB

Under FOB the seller delivers goods on board the vessel at the named port and handles export clearance. Responsibility for freight and insurance rests with the buyer. FOB is widely used for container shipments.

Choosing

Buyers with their own forwarder and experience may prefer EXW for control. Buyers new to the route often find FOB simpler. Confirm the current Incoterms edition and check with your freight forwarder, as the right choice depends on the transaction.