DES – Delivered Ex Ship

On the face of it, this type of contract appears far more straightforward than CIF (Cost, Insurance, Freight) or CFR (Cost, Freight). The seller is under an obligation to make the goods available for delivery from the ship at the agreed port of discharge. Freight and insurance are, as in CIF, for the seller’s account. Property and risk, unlike the contract terms we have considered so far, pass on delivery at the port of discharge. The price is payable upon the passing of property. This form is closest of all to the model of the basic sale, but it is not appropriate for the sale of goods by documents, so cannot be used, for example, in a Documentary Letter of Credit transaction.