FOB vs EXW vs DDP: A Shipping Terms Guide for Bag & Hat Buyers
Last updated: July 2026
Three letters on a quotation — FOB, EXW, or DDP — quietly decide who books the truck, who clears customs, who insures the goods mid-ocean, and who eats the cost if something goes wrong along the way. Most disputes we see between first-time buyers and factories trace back not to product quality but to a shipping term nobody fully explained. This guide covers the three terms we quote most often, so you know exactly what you're responsible for before you confirm an order. For everything that happens before shipping, see our guide to working with a bag & hat manufacturer end to end.
EXW (Ex Works)
Under EXW, our responsibility ends the moment your goods are packed and ready at our factory door. You — or a freight forwarder acting on your behalf — arrange and pay for everything from that point on: loading the truck, export customs clearance, ocean or air freight, import duties, and final delivery. EXW quotes look like the lowest number on paper because they exclude every downstream cost, which makes them easy to compare against unrelated shipping quotes by mistake. It's the right choice if you already have a freight forwarder and want full control of the logistics chain, and the wrong choice if this is your first time importing — the coordination burden is real.
FOB (Free On Board)
FOB is the middle ground and the most common term we quote. We handle everything up to and including loading your goods onto the vessel at the origin port — export customs clearance, domestic trucking to port, and port handling are all on us. Once the goods are on board, responsibility (and risk) passes to you: you or your forwarder book the ocean freight, arrange import clearance, and handle delivery from the destination port. FOB gives you control over which shipping line and forwarder you use — useful if you're consolidating with other suppliers into one container — without having to manage the export side yourself.
DDP (Delivered Duty Paid)
DDP is the other end of the spectrum: we handle the entire journey, including international freight, import customs clearance, and duties, and deliver to your warehouse door. It's the simplest option if you don't have an existing freight forwarder or importer of record and want one number that covers everything. The trade-off is less visibility into the individual freight and duty costs, and less flexibility to shop around for a cheaper carrier on a given lane. For small trial orders or buyers shipping into a country for the first time, DDP is usually the least stressful way to get started.
Which One Should You Choose?
| Term | You Handle | We Handle | Best For |
|---|---|---|---|
| EXW | Everything from our factory door onward | Packing goods for pickup | Buyers with an established forwarder |
| FOB | Ocean freight, import clearance, final delivery | Export clearance, trucking, loading at port | Most repeat B2B buyers |
| DDP | Receiving at your door | Everything, door to door | First-time importers, small trial orders |
We quote all three terms on every order, so you're never locked into one — many clients start with DDP for their first trial order, then switch to FOB once they've set up a freight forwarder relationship for repeat orders. Typical transit time after production is a few days by express courier, about a week by air, or 3–6 weeks by sea, depending on your destination port. If you're not sure which term fits your situation, tell us your destination country and order size and we'll recommend one as part of your quotation.
Frequently Asked Questions
What is the difference between FOB and EXW?
Under EXW our responsibility ends at the factory door, so you or your forwarder handle export clearance, trucking to port and everything after. Under FOB we also clear export customs, truck the goods to the port and load them onto the vessel; your responsibility starts once the goods are on board.
When does risk pass to the buyer under FOB?
When the goods are loaded on board the vessel at the origin port. Loss or damage before that point falls on the seller and after it on the buyer, which is why FOB buyers usually arrange their own cargo insurance for the ocean leg.
Is a DDP quote more expensive than FOB?
The DDP number is always higher, because it includes freight, import clearance and duties that an FOB quote leaves out. Compare landed cost rather than unit price: add your own freight, duty and clearance costs to the FOB quote and see which total is lower for your route and order size.
Which shipping term is best for a first order?
For a first trial order, DDP is usually the least stressful, because one price covers delivery to your door. Once you have a freight forwarder for repeat orders, switching to FOB gives you more control over carriers and costs. We quote all three terms on every order.
How long does shipping take after production?
Roughly a few days by express courier, about a week by air, and 3–6 weeks by sea, depending on the destination port. Allow extra time for import clearance at your end, especially for a first shipment into a new country.
Contact us with your target destination and order size to get a shipping-inclusive quote.