FOB vs DDP: Who Pays What and When to Use Each

By Jessica Cui · Reviewed by Matthew Wu · Last updated 2026-09-28

FOB vs DDP is the question behind most shipping disputes. One term changes who pays freight, duty and insurance. Our export company registered in December 2022. We ship from our Nanpi factory, producing since 1999. This guide splits the two terms line by line. Then it gives you a rule for choosing. Read it once, and you can check any forwarder’s numbers.

What FOB Covers

FOB means Free On Board. The seller’s job ends at the Chinese port. We load the container at the port. We handle export customs in China. The goods move to your forwarder on the water. From that moment, your costs start.

• Main ocean freight: yours.
• Insurance on the sea leg: yours.
• Import duty and clearing: yours.
• Delivery from the destination port: yours.

Risk transfers when the goods are on board. Everything before that line is on our record, with our documents.

What DDP Covers

DDP means Delivered Duty Paid. Our job ends at your door. We arrange and pay the ocean freight. We clear import customs for you. Duty and local delivery are included. You open the door and accept the boxes.

• Main ocean freight: ours.
• Import duty: ours, estimated in the quote.
• Delivery to your address: ours.
• Unloading at your dock: usually yours, stated in the quote.

DDP is the most complete term a seller can offer. It is also the least forgiving, because one delay is ours to absorb. We quote it only when the route is stable and the duty is known.

FOB vs DDP, Side by Side

FOB vs DDP is a risk-line question, not a price question. The cost gap hides in the middle rows. Our shipping and Incoterms page lists every term we quote. Pick the row where you want the risk to sit.

When FOB Is the Right Call

• You have a forwarder in China you trust.
• You consolidate parts from several suppliers into one box.
• Your import broker clears duty faster than we can.
• Volume is large enough to buy freight in bulk.

Most repeat customers with a freight agent use FOB. You keep control of the sea leg. We keep the factory side clean and documented.

When DDP Is the Right Call

• First order with us: one price, one contact.
• Small batch where freight is a big share of cost.
• You want the landed number before committing.
• No reliable broker at the destination port.

DDP trades margin for certainty. We price it with a duty estimate and a valid window. If duty changes mid-route, the contract says who absorbs it. Read that clause; it is the whole point of DDP.

Hidden Costs Under FOB

• Terminal handling at the Chinese port.
• Documentation and amendment fees if data changes.
• Demurrage when the container sits too long.
• Freight spikes on peak-season sailings.

These lines are small individually and large together. A cheap FOB quote that ignores them loses to a slightly higher one. Budget the sea leg as a range, not a point. Our lowering your metal part cost post covers the landed-cost view.

How We Quote Both Terms

Our quotes name the term in the header. FOB shows the port and what the price includes. DDP shows the destination, the duty estimate and its date. Both carry the same document set: bill of lading, packing list, invoice, material certificates. The full set is in which shipping documents we provide. The order flow behind both terms is in how an export order works. FOB vs DDP is stated in the header, never in a footnote.

Frequently Asked Questions

What is the difference between FOB and DDP?

FOB ends at the Chinese port; you run the sea leg and import duty. DDP ends at your door; we pay freight, duty and delivery.

Who pays import duty under DDP?

We do. The quote carries a duty estimate with a valid date. Duty changes after that date follow the contract clause.

Can I switch from FOB to DDP mid-order?

Yes, before booking. We re-quote the sea leg and duty, and confirm the new landed price in writing.

Which term is cheaper?

FOB is usually cheaper at volume, because you buy freight in bulk. DDP is usually better for first orders and small batches.

What port do you ship FOB from?

FOB loads at Tianjin Port. Our factory sits in Nanpi, between Beijing and Tianjin. Your quote always names the loading port.

Get Both Terms on One Quote

One quote, both terms — pick the risk line.

WhatsApp: +86 132 1225 5906 | Email: bob@xinjiuxinji.com

Or contact us online.