EXW vs FOB — True Cost Comparison
EXW or FOB — Which Actually Costs Less?
Enter your shipment details to see the true cost difference, who controls what, and which term gives you the better deal.
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What the Terms Mean
EXW and FOB — Where the Risk Transfers
The Incoterm you use defines exactly where your supplier's responsibility ends and yours begins.
EXW — Ex Works
Under EXW, the seller's only obligation is to make the goods available at their premises. Everything from that point is the buyer's problem.
Risk transfer
Risk transfers at the seller's factory gate
FOB — Free On Board
Under FOB, the seller is responsible for delivering the goods to the named port of shipment and loading them onto the vessel nominated by the buyer.
Risk transfer
Risk transfers when goods are loaded on the vessel
The Hidden Costs
What EXW Actually Adds to Your Cost
The EXW price looks lower — but you're paying for every step to the port separately, often at worse rates than your supplier gets.
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Decision Guide
When to Use EXW vs FOB
Choose EXW when:
- ✓ i1
- ✓ i2
- ✓ i3
- ✓ i4
- ✓ i5
Choose FOB when:
- ✓ i1
- ✓ i2
- ✓ i3
- ✓ i4
- ✓ i5
FAQ
Frequently Asked Questions
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