Door-to-Door, Door-to-Port, Port-to-Port, Port-to-Door

Understanding International Shipping Movement Types

Shipping goods internationally can feel complicated. Fortunately, freight forwarders offer different movement types to suit the needs of importers and exporters. These include terms like door-to-door, door-to-port, port-to-port, and port-to-door shipping.

While these terms may seem straightforward, it’s important to understand how each movement type works, their advantages and disadvantages, and which Incoterms work best with each one. Let’s break it down.

What Are the Different Movement Types?

1. Door-to-Door Shipping
   In door-to-door shipping, the freight forwarder takes care of almost everything. They pick up the goods directly from the seller’s location and deliver them to the buyer’s address. This involves using different transport methods, like trucks and ships or planes.
   • Pros: Very convenient; the freight forwarder handles all transport.
   • Cons: Usually more expensive because it covers the entire journey.
   • Who it’s best for: Those wanting hassle-free shipping with minimal responsibility.


2. Door-to-Port Shipping
   With door-to-port shipping, the freight forwarder picks up goods from the seller’s location and delivers them to the port or airport for shipment. The buyer is responsible for transporting the goods from the arrival port to their own location.
   • Pros: Good for sellers who can’t arrange transport to the port but want some control over shipping.
   • Cons: The buyer must handle transport from the port at the destination.
   • Who it’s best for: Exporters wanting help up to the port, while importers manage the last leg.


3. Port-to-Port Shipping
   In port-to-port shipping, the freight forwarder only moves the goods from the departure port to the arrival port. The buyer and seller handle transport before and after the ports themselves.
   • Pros: Cheapest option, as it only covers the sea or air transport part.
   • Cons: Both buyer and seller must manage local transport, customs, and other costs; higher risk and more paperwork.
   • Who it’s best for: Experienced shippers familiar with customs and transport logistics.

Important considerations for port-to-port shipping:

• Inland transport: Seller arranges transport to the origin port; buyer arranges transport from destination port.
• Port schedules: Exporter must manage timing to meet port and shipping schedules.
• Customs clearance: Exporter handles paperwork and costs at origin.
• Cargo insurance: Minimal insurance is included; extra coverage is recommended.
• Local charges: Importer/exporter pays local fees like port charges and document fees.


4. Port-to-Door Shipping
   For port-to-door shipping, the freight forwarder takes over when the goods arrive at the destination port and delivers them to the buyer’s address. The exporter handles getting the goods to the origin port.
   • Pros: Freight forwarder manages final delivery and inland transport at destination.
   • Cons: Exporter handles transport and customs at origin.

Matching Movement Types with Incoterms

Incoterms are rules that define who is responsible for the goods, costs, and risks at different stages. Here are the best Incoterms to use with each movement type:

• Door-to-Door:
  Use DAP (Delivered at Place) — seller delivers goods to buyer’s location, covering most costs and risks.
• Door-to-Port:
  Options include:
  • DPU (Delivered at Place Unloaded): Seller pays and takes risk until goods reach port.
  • CIP (Carriage and Insurance Paid To): Seller covers transport and insurance to port.
  • CPT (Carriage Paid To): Seller pays to port, buyer handles inland transport at destination.
  • CFR (Cost and Freight) / CIF (Cost, Insurance, and Freight): Buyer arranges transport and insurance after port.
• Port-to-Port:
  Best suited for CIF (Cost, Insurance, and Freight) — seller covers shipping and insurance to destination port, then responsibility transfers.
• Port-to-Door::
  Use:
  • CPT (Carriage Paid To): Seller delivers goods to buyer’s location.
  • DDP (Delivered Duty Paid): Seller is responsible for delivering goods to buyer’s premises, including duties and taxes.