DPU Meaning In Shipping
Delivery At Place Unloaded, or simply DPU, is an incoterm used in international shipping which defined the responsibility for goods delivery to a specific global destination. According to the DPU clause, the exporter of the goods is liable for cargo delivery to any desired destination as well as for the unloading at the pre-determined location, as well as all costs incurred during the delivery to that destination.
Price Breakup For DPU Shipments
If you opt for DPU mode in your international deliveries, here’s what the total price breakup for the entire shipping journey looks like –
- Product Cost
- Packaging
- Loading Charge
- Transit To Origin Port
- Export Customs Duties
- Terminal Charges
- Freight Loading Charges
- Freight Charges
- Shipment Security Cover
- Destination Port Terminal Charges
- Drop From Port To destination
Benefits Of Shipping Via DPU For Exporters
Worry-Free Customs Clearance At Destination
In DPU shipping, the exporter doesn’t have to take care of the customs duties and regulatory compliances at the destination port. This in turn allows them to put their entire force into other post-purchase events such as efficient tracking of orders for buyers, and 24/7 customer support.
Streamlined Inventory
DPU is considered to be a more convenient incoterm while shipping across borders because it gives the exporter leverage over their shipments until entry into the destination port. This includes the packaging, loading, and hauling of the shipments into the freight.
Transparency In Carrier Contracts
Because the cost for the entire shipping journey lies in the exporter’s hands, they can set shipping prices or negotiate carrier contracts as transparently as possible, with 100% visibility of transportation costs. Additionally, the seller can also check to provide the end buyer with some delivery proof if required in cases of delivery disputes.
Significance Of DPU
DPU is used usually by exporters with multiple shipments in a single haul of export, i.e., bulk shipments. It is also used for shipments having multiple consignees, where a seller can break down shipments into segments that will make the goods to be shipped more convenient and accessible to the consignees.
The prime advantage DPU has over other forms of incoterms is that the risk of goods in transit is transferred from the exporter/seller to the buyer as soon as the goods are unloaded at the destination port.
Summary
DPU holds a benefit over DAP as the seller or exporter does not have to bear the cost of unloading the products at the destination port, this responsibility transfers to the buyer. It is of utmost importance for the seller and buyer to mention the exact point of delivery so that the contract mutual to both parties abides by the incoterms outlined, and the liability does not entirely fall on the exporter. A cross-border logistics solution can help you determine which incoterm is best for your export business – DAP or DPU, and minimise the hassles of transit and customs charges for international deliveries.
