Order Delivery refers to the act of the seller actually handing over the goods to the buyer or its designated carrier as agreed in the contract. It is a key point in international trade for allocating risk, costs, and responsibilities. It is commonly used in the description of delivery obligations under trade terms such as FOB, CIF, and EXW, and also in determining whether delivery has been completed under settlement methods like documentary letters of credit and documentary collections. Note: Delivery does not equal transfer of risk; it must be determined in conjunction with Incoterms 2020 rules. The time and place of delivery must strictly comply with the contract, otherwise it may constitute a breach of contract. After delivery, documents such as the bill of lading should be obtained promptly. Difference from 'Shipment': Under FOB and CIF, shipment is delivery; however, under Group D terms, delivery occurs at the destination, and shipment only refers to the departure. Unlike 'Arrival', delivery emphasizes the seller's completion of the delivery act, not the actual arrival of the goods.
📝 Examples
1. According to the FOB Shanghai terms, the seller shall complete the order delivery by March 31, 2025, load the goods onto the aforementioned vessel, and promptly notify the buyer. (Note: This clarifies the delivery time, place, and notification obligation, consistent with the rule that shipment is delivery under FOB.)
2. Because the buyer failed to designate the carrier on time, causing a delay in order delivery, the seller shall not be liable for breach of contract, but shall properly keep the goods. (Note: This reflects that when delivery is delayed due to the buyer's reasons, the seller may be exempt from liability but must fulfill the obligation of safekeeping.)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
When using terms in contracts, specify the applicable version (e.g., Incoterms 2020)
For unfamiliar terms, use GlobalSync's multilingual email helper to confirm with your partner