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Starting June 1st, 2023 Our warehouse fee will be $0.65/cubic foot per month

In effort to lower the warehouse storage fee during inflation, we have went narrow aisle racking.This construction took us four months but the project is finally completed. With narrow aisle racking, we are able to drop storage by 24%.We as partners will go through this inflation together.

Starting June 1st, 2023 Our warehouse fee will be $0.65/cubic foot per month

In effort to lower the warehouse storage fee during inflation, we have went narrow aisle racking.This construction took us four months but the project is finally completed. With narrow aisle racking, we are able to drop storage by 24%.We as partners will go through this inflation together.

Blogs/education-series

01/02/2024

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Delivered Duty Paid (DDP) Means in Shipping and Import

    Delivered Duty Paid (DDP): What is it?

    An incoterms rule states that the seller bears all risk and expenses related to shipping and delivering goods to a specified location (typically the buyer's place of business). This includes export clearance, transport costs, and most importantly import clearances. It is applicable to any form or forms of transportation, including air, ocean, ground, and multimodal. When the seller makes the items available at the designated destination, ready for unloading, risk and expenses pass from the seller to the buyer.

    Since the seller bears all shipping, import, and delivery charges, DDP may appear like a good deal for buyers. However, keep in mind that sellers may raise their prices to offset the possible extra expenses associated with employing this approach.

    When accepting a DDP transaction, sellers should exercise extra caution because they might not be able to get import approvals in the country of destination. Certain nations necessitate that organizations handling import procedures have a physical presence within their borders. If a seller believes that completing import documentation would be onerous, it might be best for all parties to select DAP or DPU.

    Delivered Duty Paid (DDP): What is it?

    Some related terms shared by Worldcraft Logistics experts help you supplement your necessary knowledge

    What Delivered Duty Paid (DDP) Means

    A shipping agreement that places the seller in the most liability is called Delivered Duty Paid (DDP). The seller is responsible for making arrangements for import clearance, tax payment, and import duty in addition to the cost of delivery. Once the commodities are made accessible to the customer at the port of destination, the buyer assumes the risk. Before completing the transaction, the buyer and seller must agree on all payment terms and specify the destination name.

    The International Chamber of Commerce (ICC) created DDP in an effort to standardize shipping worldwide; as a result, DDP is most frequently utilized in international shipping transactions. Because the buyer has less obligation and pays less for shipping, DDP helps the buyer more than the seller. Nevertheless, the seller bears the brunt of this arrangement.

    Why is there a DDP?

    Why is there a DDP?

    The main arguments in favor of DDP shipping over DDU shipping are listed below.

    1. To keep the consumer safe

    DDP shipments protect the purchasers from fraud. It is in the seller's best interest to ensure that customers receive what they requested because they bear all the risk and expense of goods shipment. Scammers won't even contemplate using DDP shipping because of the time and expense involved. 

    2. To guarantee the safe delivery of goods to the intended location for international trade

    When exporters send packages halfway across the world, a lot may go wrong. Every nation has its own rules governing shipping costs, import taxes, and transportation. DDP forces the seller to be careful to dispatch packages only via the most efficient and secure ways. 

    3. To guarantee the safe delivery of freight by air or water

    It might be challenging to deliver a product safely by air or water, depending on its nature and the location of sale. In essence, DDP is a delivery contract that makes sure merchants don't just grab the money and go.

    4. To make vendors pay for any overseas commissions

    There's a danger the sale won't go through if the buyer needs to pay customs fees as they won't know how much these would cost. DDP makes shopping easier by eliminating the need for the buyer to worry about paying foreign fees, while merchants and shippers handle these costs.

    The Seller's obligations