Among the many shipping terms, DDP by Ocean Freight (Delivered Duty Paid) is gradually becoming a popular choice. So, what is DDP by Ocean Freight? What is unique about it? What conveniences and challenges can it bring to international trade?

What is DDP by Ocean Freight?

DDP by Ocean Freight is one of the international trade terms, which means that the seller bears all costs and risks from the place of departure to the destination, including ocean freight, insurance, import duties and other taxes at the destination, until the goods are delivered to the buyer's designated place. This term minimizes the buyer's responsibilities and risks because the seller is responsible for all logistics and customs clearance procedures.

The main links of DDP by Ocean Freight

1. Pick-up: The seller arranges to pick up the goods, usually from the factory or warehouse.

2. Packaging and warehousing: The seller is responsible for the packaging and warehousing of the goods to ensure that the goods are suitable for sea transportation.

3. Export Customs Clearance: The seller handles the export customs clearance procedures.

4. Sea Freight: The goods are transported to the destination port by sea.

5. Import Customs Clearance: The seller is responsible for the import customs clearance procedures at the destination, including payment of tariffs and other fees.

6. Delivery: After the goods are cleared, the seller arranges to deliver the goods to the buyer's designated location.

What are the advantages of DDP by sea?

1. Minimization of buyer's risk

Under the DDP by sea terms, the buyer does not need to bear almost any risk and responsibility during the transportation process. All costs and risks are borne by the seller until the goods are delivered to the buyer's designated location. This is undoubtedly a great convenience for buyers, especially those companies that lack international logistics experience.

2. Full process control

Since the seller is responsible for the entire transportation process, all links from the departure point to the destination are under its control, which can ensure smoother transportation of goods. This helps to improve the reliability and punctuality of cargo transportation and reduce possible problems in the middle links.

3. Simplified operation

For buyers, choosing DDP by sea terms can save complicated import procedures and customs clearance procedures. The buyer only needs to inspect and receive the goods after they arrive, which greatly simplifies the operation process and saves time and labor costs.

4. Transparent cost control

Under the DDP terms, the seller needs to bear all costs, which allows the buyer to clearly know the final cost and avoid the generation of additional costs. In this way, the buyer can better control costs and manage budgets.

Summary of DDP by sea

As an international trade term for delivery after tax payment, DDP by sea provides a variety of conveniences and guarantees for both buyers and sellers.

Although the seller needs to bear more responsibilities and risks under this transportation term, DDP by sea can significantly improve the efficiency and reliability of international logistics through scientific management and effective operation.

For buyers, choosing DDP by sea can simplify the operation process, reduce risks, and ensure that the goods arrive at the destination safely and on time.