Sourcing custom display props from overseas? The right shipping term can save your project — and the wrong one can sink it. Too often, brands or creative agencies discover late in the process that their shipping term exposes them to surprise costs, customs delays, or unclear responsibilities.
The confusion stems from misunderstanding trade terms like EXW, FOB, and CIF. These small acronyms define big differences: who pays for freight, who handles insurance, who’s responsible when something goes wrong. Choose wrong, and even your best-designed display could arrive late, damaged, or stuck at customs.
EXW, FOB, and CIF are international shipping terms that define who pays, who’s liable, and how much control the buyer or seller has over logistics. Choosing the right term ensures your display props arrive on time, on budget, and with fewer surprises.
Let’s break down how each term works — and how to choose what’s best for your next rollout.
What is EXW and when should you use it?
EXW (Ex Works) means the supplier makes the goods available at their factory or warehouse. The buyer is responsible for everything after pickup — transport, export clearance, insurance, freight, and final delivery.
EXW gives the buyer full control over shipping, ideal if you have a trusted freight partner and want to manage costs tightly.
Buyer’s Responsibilities:
- Pick up goods at the supplier’s location
- Arrange export customs clearance
- Pay for freight, insurance, duties, and last-mile delivery
Pros:
- Lowest upfront cost
- Total logistics control
- Ideal if you have freight partners and customs experience
Cons:
- All risks are on the buyer
- Complex process if your team lacks experience
What is FOB and how does it benefit brands?
FOB (Free On Board) means the seller arranges local transport and loads the goods on board the vessel. From that point forward, the buyer takes over risk and costs.
FOB is best when you want the seller to handle transport to the port, but you still want control of the international shipment.
Buyer’s Responsibilities:
- Freight and insurance from port of origin
- Import duties and taxes
- Local delivery after arrival
Pros:
- Clear risk transfer
- You control the main shipping leg
- Seller handles domestic logistics
Cons:
- You’re liable once goods are loaded
- You must manage import clearance and local delivery
What is CIF and is it worth the extra cost?
CIF (Cost, Insurance, Freight) means the seller handles shipping and insurance to the destination port. The buyer only takes over once the goods arrive.
CIF is ideal for brands with limited logistics experience who prefer a simple, predictable shipping cost.
