The main reasons why customers choose DDP air freight are as follows:
The customer is the first time or just started to import, and he doesn't know much about transportation, customs and other links, so he relies on the exporter to help him handle these links.
There are also some customers, especially some French customers, who are not willing to deal with these trivial matters, and urge the exporter to handle them.
There are also some customers who do DDP air freight business to reduce the risk of import, especially some goods that are easily subject to import restrictions, tariffs or trade barriers. This risk is transferred to the exporter through DDP air freight. (From the comparison in the figure below As can be seen in the DDP terms, the seller's responsibilities and obligations are greater than all other trade terms)
2. The risk of DDP for exporters
First of all, compared with FOB/C&F, the risk of DDP air freight to the seller is much greater, and it should be said that it is the most risky trade term. Under FOB or C&F, when the goods are loaded on the ship, the risk is transferred to the buyer . However, under the condition of DDP air freight, the risk of the seller has to continue until it is handed over to the customer. If there is any error in the goods, the seller has to pay the bill. Therefore, the seller of DDP air freight should be able to apply for cargo transportation insurance, and if there is a problem, you can also find insurance company.
There are many links involved in DDP air freight, and some links may not be considered in the initial cost calculation, so it is better to leave more space when calculating the cost and quoting the customer.
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