Delivered Ex Ship (DES)

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Delivered Ex-Ship (DES)

Overview

Delivered Ex-Ship (DES) was an Incoterm used in international shipping contracts that required the seller to deliver goods to an agreed port of destination, bearing all costs and risks until the goods arrived at that port. The seller’s obligation ended once the goods were delivered on board the ship at the named port and not yet cleared for import. DES was replaced in 2011 by two Incoterms: Delivered at Terminal (DAT) and Delivered at Place (DAP).

Seller responsibilities under DES

  • Arrange and pay for carriage to the named port of destination.
  • Assume all risks of loss or damage to the goods until arrival at that port.
  • Obtain and pay for insurance and shipping necessary to bring goods to the port.
  • Not responsible for unloading the goods from the ship or for import customs clearance at destination.

Buyer responsibilities under DES

  • Accept delivery once the goods arrive on board at the named port.
  • Arrange and pay for unloading, import duties, and customs clearance.
  • Arrange onward transportation from the port and any insurance beyond arrival.

Allocation of risk and costs

  • Risk transfers from seller to buyer when the goods are delivered on board the ship at the agreed destination port.
  • The seller covers transport costs up to that point; costs beyond the port (unloading, import formalities, inland carriage) are the buyer’s responsibility.

How DES compares to other Incoterms

  • DAT (Delivered at Terminal): Seller is responsible for delivery to and unloading at a terminal; seller bears costs and risks until unloading is completed. DAT replaced part of DES’s role for terminal deliveries.
  • DAP (Delivered at Place): Seller delivers to a specified place (not unloaded); unloading and import formalities are the buyer’s responsibility. DAP replaced DES for deliveries to a place other than a terminal.
  • EXW (Ex Works): Opposite of DES — seller makes goods available at its premises and the buyer assumes all transport costs and risks from that point.
  • Delivered Ex-Quay (DEXQ): A now-discontinued term requiring delivery to the quay/wharf; unlike DES, DEXQ explicitly covered delivery to a quay and could specify whether duties were paid or unpaid.

Real-world examples

  • If a ship carrying goods sinks before reaching the destination port, the seller bears the loss under DES because delivery had not occurred.
  • If the ship sinks after arriving and the buyer has taken contractual possession (delivery at port), the buyer bears the loss.

Key takeaways

  • DES placed transport costs and risk on the seller until arrival at the agreed port; unloading and import responsibilities fell to the buyer.
  • The term was phased out in 2011 and effectively replaced by DAT and DAP to provide clearer allocation of unloading and terminal responsibilities.
  • Clear specification of the chosen Incoterm in contracts remains essential to avoid disputes over where responsibility and risk transfer.