Sourcing & Compliance

EXW vs FOB for Hardwood Flooring: Who Handles What, and When

EXW vs FOB for hardwood flooring containers: who arranges export clearance, haulage and loading, where risk transfers, and what to confirm before you book.

Vu Uy Wood · October 4, 2026
All buyer guides

Two flooring quotations can show the same product at different prices simply because they are quoted on different trade terms. EXW and FOB are the two terms importers meet most often at the start, and they split the work of getting a container from factory to ship very differently. This guide explains what each term means under Incoterms 2020 and what to confirm before the first booking.

What Incoterms do, and what they do not

Incoterms are rules published by the International Chamber of Commerce (ICC). The current edition is Incoterms 2020. Each rule defines three things between seller and buyer:

Incoterms do not decide the price, the payment terms, the transfer of ownership or what happens if the goods are wrong. Those belong in the sales contract. A term should always be written with its named place and the edition, for example “FOB [named port of shipment] Incoterms 2020”.

EXW: Ex Works

Under EXW, the seller makes the goods available at its own premises, or another named place, packed and ready for collection. That is where delivery happens, and from that moment the buyer bears the risk and cost.

What the buyer takes on under EXW

Where EXW can create friction

EXW gives the buyer the most control over the shipment and the most responsibility for it.

FOB: Free On Board

Under FOB, the seller delivers the goods on board the vessel nominated by the buyer, at the named port of shipment. Risk passes to the buyer once the goods are on board.

What the seller takes on under FOB

What the buyer takes on under FOB

A note on FOB and containers

FOB is designed for sea and inland waterway transport where goods are placed on board. ICC guidance notes that containerized goods are often handed over at a terminal before loading, and for that situation it suggests FCA (Free Carrier) as a better fit, since the seller loses physical control of the container before it reaches the ship. Many flooring buyers still use FOB. If you do, be clear with your supplier and forwarder about when and where the container is handed over.

Side-by-side comparison

Task or pointEXWFOB
Delivery pointSeller’s premises or named placeOn board the vessel at the named port
Risk transfersWhen goods are made availableWhen goods are on board
Loading at the factoryBuyer (unless agreed otherwise)Seller
Inland haulage to portBuyerSeller
Export clearanceBuyerSeller
Vessel bookingBuyerBuyer nominates
Ocean freight and insuranceBuyerBuyer
Import clearanceBuyerBuyer

What to confirm for a flooring container

Whatever the term, flooring has a few details that are easy to leave until too late.

Packing and pallets

Labeling

Loading and handover

Documents

Questions to ask your supplier

Choosing between them

EXW suits buyers with a forwarder that has strong local reach and who want to control every step. FOB suits buyers who prefer the supplier to handle origin tasks and export formalities while they control the ocean leg. Neither is right for every order. What matters is that both sides read the same term the same way, and that the contract names the place. Our RFQ checklist shows where to state your preferred term in the first request, and the order process article explains the steps before a container is packed.

Working with Vu Uy Wood

Vu Uy Wood manufactures solid and engineered French White Oak flooring to specification in Song Than 3 Industrial Park, Ho Chi Minh City. Our order process ends with packing and shipping: carton count, labeling and pallet build, then the container. When you request a quotation through the contact page, include your delivery address or port and your preferred trade term, and the quotation will state the term it is based on.

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