EXW - Ex WorksBack to Logistics Insight Hub index
Business quick take
EXW, or Ex Works, is an incoterm that refers to a trade agreement where the seller makes goods available at their premises, and the buyer is responsible for all other risks and costs associated with delivery.
Businesses that want to minimize their responsibility for shipping costs and logistics might opt for EXW, especially if they are capable of managing freight from the seller's location.
Consider the readiness of your logistics team to handle transportation, the risks involved in transit, and the potential costs you'll take on once the goods leave the seller's location.
Companies that have robust logistics capabilities often use EXW to have better control over the shipping process and costs from the point of origin.
EXW can be cost-effective and provide greater control over logistics, but it requires a clear understanding of export procedures and costs.
Ex Works (EXW) is an Incoterm where the seller delivers goods ready for export at their premises. This term places maximum responsibility on the buyer and minimum obligations on the seller, making it crucial for the buyer to have a deep understanding of the end-to-end shipping process.
For businesses with established logistics processes, choosing EXW can offer greater control over shipping costs and the transportation schedule. It's particularly advantageous for buyers looking to consolidate shipments to optimize transport efficiencies.
When considering EXW, decision-makers should analyze:
- Logistics Expertise: Assess your company's in-house logistics capabilities to handle export processes, including customs clearance and transportation.
- Cost Implications: Determine the potential savings in shipping costs against the responsibility of managing the entire transport process.
- Risk Management: Develop strategies to mitigate risks associated with transportation and handling, especially in international trade.
Many businesses use EXW to leverage competitive shipping rates by negotiating directly with carriers. By doing so, they can often reduce costs compared to seller-included shipping. Additionally, companies with a global footprint might prefer EXW to centralize their logistics operations and enhance oversight.
Terminal49 offers a suite of tools that can be instrumental for businesses operating on EXW terms:
- Real-time Tracking: Stay updated on the movement of your goods from the point of origin.
- Cost Analysis: Utilize Terminal49’s analytics to understand and forecast the cost implications of shipping under EXW terms.
- Risk Mitigation: Access data that helps in anticipating and managing potential disruptions in the supply chain.