Nanbin Shipping Options: EXW, FOB, DDP Explained
| Term | In a Nutshell | Who Arranges Freight |
|---|---|---|
| EXW (Ex Works) | We make it ready at our factory door; everything after that is yours | You |
| FOB (Free On Board, Shenzhen Port) | We deliver to Shenzhen port and load onto the vessel; ocean freight is yours | We handle domestic, you handle ocean |
| DDP (Delivered Duty Paid) | We deliver to your warehouse door; you just receive the goods | We handle everything |
- You have a strong freight forwarder and want to control costs → EXW or FOB
- First-time cooperation or unfamiliar with customs clearance → DDP
EXW (Ex Works)
Our price covers product cost + packaging only. Everything after the factory gate — domestic trucking, customs clearance, ocean/air freight, destination customs, duties — is arranged and paid by you.
Included in the quote:
- Product cost
- Inner and outer packaging
- Loading onto your nominated truck
Not included:
- Domestic trucking from factory to port
- Export customs clearance
- Ocean / air freight
- Insurance
- Destination customs clearance and duties
Best for:
- Clients with a long-term freight forwarder and competitive rates
- Clients familiar with destination customs
- Clients consolidating goods from multiple factories
Note: EXW does not mean we are less cooperative. We prepare your goods on time, and our team will be on-site to assist during loading.
FOB (Free On Board, Shenzhen Port)
Our price covers product cost + packaging + domestic trucking to Shenzhen port + export customs clearance. Once the goods are loaded onto your nominated vessel, all subsequent costs are yours.
Included in the quote:
- Product cost + packaging
- Domestic trucking from factory to Shenzhen port
- Export customs clearance
- Port charges (up to loading)
Not included:
- Ocean freight
- Insurance
- Destination customs clearance and duties
- Destination drayage to warehouse
Best for:
- Clients with a forwarder who prefer not to handle the domestic leg
- Clients who want to control ocean freight costs directly
- Full container load shipments
FOB is our most commonly used term. The majority of our cross-border clients ship FOB Shenzhen — your forwarder books the vessel, we deliver to port, responsibility is clearly split, and both sides save time.
DDP (Delivered Duty Paid)
We handle everything; you just receive the goods. From our factory to your warehouse address — all transportation, customs clearance, and duties — managed and covered by us.
Included in the quote:
- Product cost + packaging
- Domestic trucking to port
- Export customs clearance
- Ocean / air freight
- Insurance
- Destination customs clearance and duties
- Last-mile delivery to your warehouse
Best for:
- First-time clients working with a Chinese factory
- Clients without an established freight forwarder
- Moderate order volumes where simplicity matters
- Clients who want a single landed cost for easy pricing
Note: DDP total cost will be higher than EXW — we take on more responsibility and risk. The upside is one flat price, no hidden fees. There is no need to coordinate with freight forwarders, customs brokers, and couriers separately.
Why We Offer Three Options
We offer three terms because our clients have different logistics setups — and forcing one option onto every buyer adds unnecessary cost or complexity.
EXW works best for experienced buyers with established forwarders who may be consolidating from multiple factories. We give you the lowest base price and you handle the rest.
FOB is the middle ground and our most common arrangement. We manage the domestic leg, you manage the ocean leg. Responsibility is clearly split.
DDP is designed for first-time or logistics-averse clients. The price is higher, but there is only one point of contact and one invoice — no need to juggle factory, forwarder, and customs broker.
Which Term Works Best for Your Order Size
Order volume affects which term gives the lowest total cost. Based on our shipping experience:
Small Quantities (Samples / 50–500 pcs / Air Freight)
| Term | Cost Assessment | Our Recommendation |
|---|---|---|
| DDP | Flat door-to-door rate, no surprises. Service premium is small in absolute terms on small volumes | ⭐⭐⭐ Recommended |
| FOB | You book air freight, we handle domestic. Works well if you have an established forwarder account | ⭐⭐ Optional |
| EXW | Lowest cost if you have a FedEx/UPS/DHL business account and handle customs yourself | ⭐⭐ Only if you have an account |
For small shipments, we generally recommend DDP unless you have a corporate courier account. DDP removes the coordination overhead entirely.
Bulk Orders (Full Container / 1,000+ pcs / Sea Freight)
| Term | Cost Assessment | Our Recommendation |
|---|---|---|
| FOB | Domestic leg cost spreads thin at scale. You negotiate ocean freight directly | ⭐⭐⭐ Recommended |
| EXW | If you have a strong long-term forwarder, EXW saves a small amount on domestic handling | ⭐⭐ Good if you have a forwarder |
| DDP | Service premium adds up significantly on large volumes | ⭐ Not recommended |
For bulk orders, we recommend FOB. The domestic cost per unit becomes negligible at scale, and direct negotiation of ocean freight gives you better control over total landed cost.
Quick Reference
| Small (Air Freight) | Bulk (Sea Freight) | |
|---|---|---|
| Best value | DDP or EXW+courier | FOB |
| Easiest | DDP | FOB |
| Most common | DDP door-to-door | FOB Shenzhen |
| Avoid | EXW without a courier account | DDP (premium too high) |
FAQ
How much more is FOB vs EXW?
It depends on distance from factory to Shenzhen port and cargo volume. The difference is usually small per unit for larger orders. Confirm at inquiry for an exact comparison.
How are DDP duties calculated?
Duties are based on the destination country’s HS Code classification and declared value. Our DDP quote includes estimated duties. If actual customs charges differ, the difference is settled at actual cost.
Do you support air freight?
Yes — all three terms support air freight. FOB air means we deliver to Shenzhen airport; you book the air leg. DDP air means we deliver to your door. Air freight is typically 3–5x more expensive than sea, best for small urgent orders.
I want to use my own forwarder with FOB. How does it work?
Tell us at order placement. Provide your forwarder’s contact info and shipping instruction (S/O). We notify your forwarder 3–5 days before cargo is ready for pickup. They arrange a truck to our factory, we load, clear customs, and deliver to port.
Can DDP deliver to my company warehouse address?
Yes. Provide your warehouse address at order placement and we will arrange door-to-door delivery. Major markets (US, Europe, UK, Australia) are standard. For remote areas, let us know upfront so we can confirm last-mile delivery options.
Have specific logistics questions? Contact us with your delivery address and order quantity — we will quote EXW, FOB, and DDP so you can compare.
2026-05-11 | Knowledge Base | Shipping & Logistics
