What is the main difference between DPU and FOB?

They split 2 cost blocks differently. main carriage (freight) falls to the seller under DPU and the buyer under FOB; unloading at destination falls to the seller under DPU and the buyer under FOB.

Where does risk pass under DPU?

Once the goods are unloaded at the named destination.

Where does risk pass under FOB?

When the goods are loaded on board the ship.

Can DPU and FOB both be used for container shipments?

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

DPU vs FOB: who pays what

DPU is Delivered at Place Unloaded. FOB is Free On Board. Incoterms 2020.

The difference that matters

Main carriage (freight):DPUSeller·FOBBuyer
Unloading at destination:DPUSeller·FOBBuyer

Full cost split

Cost block	DPU	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	Seller	Buyer
Import clearance	Buyer	Buyer
Duties and import taxes	Buyer	Buyer
Risk passes	Once the goods are unloaded at the named destination.	When the goods are loaded on board the ship.
Transport mode	Any mode	Sea / inland waterway

What people get wrong

DPU

The seller must be able to unload at a place they do not control. Agree who supplies the forklift or crane before signing.

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 DPU and FOB?: They split 2 cost blocks differently. main carriage (freight) falls to the seller under DPU and the buyer under FOB; unloading at destination falls to the seller under DPU and the buyer under FOB.
Where does risk pass under DPU?: Once the goods are unloaded at the named destination.
Where does risk pass under FOB?: When the goods are loaded on board the ship.
Can DPU and FOB both be used for container shipments?: DPU 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 DPU CFR vs FOB CIF vs DPU CIF vs FOB CIP vs DPU CIP vs FOB CPT vs DPU 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.