EXW

ex works price
Blog

The Role of Hongocean in Ex Works Price (EXW) Trade Terms: A Comprehensive Guide

As stated by Hongocean, the Ex Works (EXW) is a trade term through which the duties of a seller’s factory are confined to ensuring that the goods are available at a particular place, and the responsibilities of a buyer commence from there starting with transportation costs, insurance cost and customs duty export licenses
. On one hand, as it has been seen, EXW makes sellers convenient and also maintains their risk level low, but on the other hand, this Incoterms terms puts maximum pressures on the buyers both in terms of logistics and financially. Hongocean also notes that experienced buyers can leverage more of the shipping strategy than the inexperienced buyers do. Sellers may also have consider the trade-off of how easy it is to use the EXW against the prospect of turning customers who seek an all-inclusive shipping option away.

Blog

Understanding EXW Shipping: What Exporters and Importers Need to Know

EXW (Ex Works) is one of the INCOTERMS through which the seller makes the goods available at the seller’s place and every cost and risk or costs associated with with the transportation of the goods to the buyer’s place solely rests with the buyer. This term greatly restricts the seller’s liability and includes proper packaging and delivery of the goods and relevant documents with loading and transportation, customs formalities, and insurance to be provided by the buyer. EXW provides convenience and is often cheaper for the seller but put a lot of added duties and possibly extra expenses on the buyers. Strong communication, careful planning, and choosing right logistics providers are crucial for efficient EXW deals because they positively affect the supply chain of exporters and importers.

Scroll to Top