📦 EXW, FOB, CIF, CFR, DDP Explained – A Clear Guide for China–U.S. Shipping

When shipping goods internationally — especially from China to the U.S., understanding incoterms like EXW, FOB, CIF, CFR, and DDP is crucial. These trade terms define who pays, who takes the risk, and where responsibilities shift between buyer and seller.

At Passionship Logistics, we help our clients choose the best shipping terms based on their budget, logistics capabilities, and delivery preferences. Let’s break down each incoterm clearly:

🚪 EXW (Ex Works) — Minimum Responsibility for Seller

Delivery Location: Seller’s factory or warehouse in China

Customs: Buyer is responsible for export and import clearance

Who Pays What: Buyer bears all costs from pickup to final delivery

Risk Transfer: Once goods are handed to buyer or their agent at the factory

Ideal For: Buyers with local agents in China or experience with export procedures

Key Note: Seller has the least responsibility; buyer handles everything

🔍 Used when buyer has full control of shipping or wants to use their own freight forwarder.

⚓ FOB (Free On Board) — A Popular Standard in Sea Freight

Delivery Location: Named loading port in China (e.g., Shenzhen Port)

Customs: Export clearance handled by the seller

Who Pays What:

Seller: Costs up to loading onto vessel

Buyer: Freight, insurance, and costs after loading

Risk Transfer: Once goods are loaded on board

Ideal For: Traditional ocean freight buyers, especially bulk shipments

Key Note: Most commonly used term for international container shipping

📌 Buyer must arrange ocean freight and insurance once goods are onboard.

🚢 CIF (Cost, Insurance and Freight) — Seller Arranges Basic Coverage

Delivery Location: Destination port in buyer’s country (e.g., Los Angeles)

Customs: Export clearance by seller

Who Pays What:

Seller: Shipping + basic marine insurance

Buyer: Port charges, customs clearance, import duties

Risk Transfer: When cargo is loaded on the vessel

Ideal For: Buyers who want freight and insurance arranged for them

Key Note: Seller covers insurance — but usually only minimum coverage

💡 If you want more comprehensive insurance, confirm policy details with your forwarder.

🌊 CFR (Cost and Freight) — Insurance Not Included

Delivery Location: Destination port (without insurance)

Customs: Export clearance by seller

Who Pays What:

Seller: Freight to destination port

Buyer: Insurance + all import costs

Risk Transfer: At point of loading onto vessel

Ideal For: Experienced importers managing their own insurance

Key Note: Seller pays freight only; buyer covers risk

📝 Always combine with cargo insurance if using CFR.

🚚 DDP (Delivered Duty Paid) — All-Inclusive, Door-to-Door Delivery

Delivery Location: Final destination (e.g., buyer’s U.S. warehouse)

Customs: Seller handles both export and import customs

Who Pays What:

Seller: Everything — shipping, customs, duties, delivery

Buyer: Nothing extra

Risk Transfer: After delivery to the buyer’s door

Ideal For: E-commerce sellers, Amazon FBA shipments, or businesses wanting no hassle

Key Note: Seller takes maximum responsibility

✅ At Passionship, our DDP shipping from China to the USA is one of the most popular services for Amazon and Shopify sellers.

🧭 Which Term Should You Choose?

Why Work With Passionship Logistics?

At Passionship, we offer tailored China–USA freight solutions based on your preferred incoterms. Whether you're a first-time importer or a seasoned logistics buyer, we provide:

✅ Clear cost breakdowns

✅ DDP air & sea freight services

✅ Amazon FBA delivery

✅ Real-time tracking & customs support

✅ English-speaking customer service

📞 Ready to ship from China to the USA?
👉 Get a free quote today

Passionship Logistics – Your trusted freight forwarder from China to the U.S.
We make shipping simple, reliable, and transparent.