Understanding DPU delivery responsibilities, unloading procedures, and potential risks across FCL, LCL, airfreight, rail, and road transportation.

Introduction

In DPU (Delivery at Place Unloaded), the seller is responsible for transporting goods from origin to the agreed destination, ensuring they are unloaded at the specified location.

“Unloading” refers to the physical transfer of goods from a transportation unit to the buyer’s designated location. Buyers may have specific unloading preferences:

• Some prefer to use their own equipment and insurance for unloading
• Small items like courier packages can be easily delivered without complex unloading procedures

The key is ensuring that goods are safely and efficiently transferred to the buyer’s possession, with flexibility based on the type and size of the shipment.

The primary challenge for sellers is customs clearance, as most countries require local companies to handle this process, including responsibility for VAT/GST, duties, and taxes.

If the buyer handles the import customs declaration—which is typical—they are responsible for any:

• Missdeclaration
• Value underdeclaration
• Duties and taxes shortages

DDP (Delivered Duty Paid) is commonly used in eCommerce, especially when the seller faces minimal risk, goods are transported via courier, and buyer authorization requirements are minimal

FCL delivery under DPU

Delivery under FCL (Full Container Load) shipping presents significant logistical challenges, primarily centered around equipment use and time constraints. Shipping lines typically offer two primary unloading approaches:

Live Unloads

These are time-limited windows—often around 3 hours—where the truck arrives, the container is immediately unloaded, and the equipment is promptly returned. This method requires precise coordination and efficiency.

Drop and Pick

In this approach, the shipping line drops the container at the destination and returns later to retrieve it. However, any additional time or movements required by the truck will incur extra expenses.

The critical question emerges: Who bears responsibility for slow container unloading, and what are the financial implications of delays? Key Potential Responsibilities and Consequences:

• If the buyer causes delays during unloading, they might be responsible for demurrage charges (fees for occupying the container beyond the allocated free time)
• Detention charges could be applied if the container equipment is not returned within the agreed timeframe
• Precise contractual terms and specific shipping agreements will ultimately determine financial accountability

These complexities underscore the importance of clear communication, efficient logistics planning, and well-defined responsibilities in international shipping operations.

When a seller accepts DPU Incoterms, the contract must explicitly specify responsibilities for:

• Truck waiting time
• Demurrage charges
• Detention fees
• Container damages
• Container cleaning costs

Clear allocation of these potential additional expenses prevents future disputes and ensures smooth logistics operations.

LCL delivery under DPU

When delivered at a Container Freight Station (CFS), the goods are already unloaded. The buyer will pay additional storage charges if the goods remain beyond the allowed free time.

When delivered to the customer’s premises, in most cases the goods must be small enough for the truck driver to unload and place in the buyer’s designated location. If the goods are palletized and the buyer has the equipment, it would be easier for the buyer to arrange for unloading.

In both cases, any additional costs incurred after the delivery must be clearly stated at the time of the contract.

Airfreight delivery under DPU

When delivered at a the airport terminal, the goods are already unloaded. The buyer will pay additional storage charges if the goods remain beyond the allowed free time.

Similar to other cases under DPU, when delivered to the customer’s premises, in most cases the goods must be small enough for the truck driver to unload and place in the buyer’s designated location. If the goods are palletized and the buyer has the equipment, it would be easier for the buyer to arrange for unloading.

Rail delivery under DPU

At the rail terminal, the goods are unloaded from the railcar. The Destination Terminal Handling Charge (DTHC) for unloading the container is the responsibility of the seller. Any additional costs incurred after delivery, such as storage costs, are the responsibility of the buyer.

In rare instances, DPU (Delivery at Place Unloaded) deliveries occur by rail directly to the buyer’s premises, which requires the buyer to have a dedicated rail ramp at their facility.

Road delivery under DPU

With DPU (Delivery at Place Unloaded), the complexity of unloading depends on the size and weight of the goods. Moving small packages that can be handled by a single worker is straightforward. However, unloading becomes challenging when specialized machinery is required to move the goods.

Conclusion

• There is a high risk on the seller who must clear import customs at a foreign country
• Sellers will need the services of a reliable freight forwarder at destination