What is the main difference between DAP and FOB?

They split 1 cost block differently. main carriage (freight) falls to the seller under DAP and the buyer under FOB.

Where does risk pass under DAP?

At the named destination, with the goods still on the arriving vehicle.

Where does risk pass under FOB?

When the goods are loaded on board the ship.

Can DAP and FOB both be used for container shipments?

DAP works for any mode of transport. FOB is written for sea and inland waterway transport only.

DAP vs FOB: who pays what

DAP is Delivered at Place. FOB is Free On Board. Incoterms 2020.

The difference that matters

Main carriage (freight):DAPSeller·FOBBuyer

Full cost split

Cost block	DAP	FOB
Export clearance	Seller	Seller
Carriage to port / terminal	Seller	Seller
Loading onto main carriage	Seller	Seller
Main carriage (freight)	Seller	Buyer
Insurance	Neither obliged	Neither obliged
Unloading at destination	Buyer	Buyer
Import clearance	Buyer	Buyer
Duties and import taxes	Buyer	Buyer
Risk passes	At the named destination, with the goods still on the arriving vehicle.	When the goods are loaded on board the ship.
Transport mode	Any mode	Sea / inland waterway

What people get wrong

DAP

If the buyer is slow to clear customs, the goods sit and the demurrage lands on the seller, who still controls the carriage contract.

FOB

Routinely misused for containers. A container is handed over at a terminal days before loading, so the seller keeps risk they think they have shed.

Questions

What is the main difference between DAP and FOB?: They split 1 cost block differently. main carriage (freight) falls to the seller under DAP and the buyer under FOB.
Where does risk pass under DAP?: At the named destination, with the goods still on the arriving vehicle.
Where does risk pass under FOB?: When the goods are loaded on board the ship.
Can DAP and FOB both be used for container shipments?: DAP works for any mode of transport. FOB is written for sea and inland waterway transport only.

Whichever term you agree, the paperwork has to say so

The Incoterm and named place belong on the commercial invoice, the packing list and the shipper's instructions — spelled the same way on each. ovrseas generates the set from one entry so they cannot disagree with each other.

Commercial invoice template

Compare other pairs

CFR vs DAP CFR vs FOB CIF vs DAP CIF vs FOB CIP vs DAP CIP vs FOB CPT vs DAP CPT vs FOB

Incoterms® is a registered trademark of the International Chamber of Commerce. This page is an independent summary of how costs and risk are allocated and is not affiliated with or endorsed by ICC. For contract drafting, use the official Incoterms® 2020 rules published by ICC.