Order Delivery

Order Delivery refers to the act of the seller actually delivering the goods to the buyer or its designated carrier as agreed in the contract. It is a key milestone in foreign trade processes, directly affecting risk transfer, cost allocation, and payment terms. It is commonly used in contract clauses, letter of credit requirements, and logistics arrangements under trade terms such as FOB, CIF, and EXW. Note: Delivery is not the same as arrival; the place, time, and method of delivery must be clearly defined. Under FOB, delivery is completed when the goods are loaded on board the vessel designated by the buyer, while under CIF, delivery is completed on board at the port of shipment, but the seller must pay freight and insurance to the port of destination. Unlike 'Shipment,' delivery emphasizes the actual act of handing over, whereas shipment focuses on the loading of goods. It differs from 'Arrival' in that arrival means the goods have reached the port of destination, and risk may have already transferred. Foreign trade practitioners should accurately define the delivery point in accordance with Incoterms 2020 to avoid breach of contract, extra costs, or claims due to delivery delays or wrong locations.