Dictionary

Delivered ex ship (DES)

“A former shipping term in which the seller delivered goods on board the arriving ship at the destination port, before unloading and import clearance. DES was dropped from the Incoterms rules in 2010.”

Why delivered ex ship (DES) matters to a first-time founder

DES can still appear in old contracts, templates or long-running disputes, but it was removed from Incoterms 2010. Using it in a new sale creates avoidable uncertainty about delivery, risk and costs. Founders trading internationally should name a current rule and its version explicitly.

Examples of delivered ex ship (DES)

A 2008 contract states “DES Rotterdam, Incoterms 2000” for a ¥9 million shipment. The seller bears cost and risk until the goods are available to the buyer aboard the vessel at Rotterdam, before unloading and import clearance. That wording must be interpreted under the named 2000 rules.

Common misunderstanding

DES did not mean that the seller unloaded the goods or cleared them for import. It also should not be silently treated as a current Incoterm. The International Chamber of Commerce replaced its function with newer rules, but the closest choice depends on the intended delivery point and transport.

When to use it

Use it only when interpreting an agreement that expressly incorporates the older rule. For a new contract, choose a current Incoterms rule with trade and legal advice, then state the named place and edition, such as “Incoterms 2020”. Do not reuse a legacy template without review.