Legal Definitions - delivered ex quay

DEQ stands for "delivered ex quay."

"Delivered ex quay" (DEQ) is a specific term used in international tradecontracts, exclusively for goods transported by sea or inland waterway. It clearly defines the responsibilities of the seller and the buyer regarding the delivery, costs, and risk of loss for the goods being shipped. Under a DEQ agreement, the seller takes on a significant level of responsibility, covering almost all costs and risks associated with bringing the goods to the named port of destination and ensuring they are unloaded onto the quay (the dock or wharf).

Specifically, the seller is responsible for:

• Clearing the goods for export from their country.
• Paying all transportation costs, including freight and insurance, to the specified destination port.
• Arranging for and bearing the cost of unloading the goods from the vessel onto the quay at the destination port.

The crucial point for the transfer of risk and responsibility from the seller to the buyer occurs only after the goods have been successfully unloaded from the ship and placed on the quay at the destination port. Until that exact moment, the seller bears the risk of any loss or damage to the goods.

Examples of Delivered Ex Quay (DEQ) in Practice:

• Example 1: Industrial Equipment Shipment

  A German manufacturer sells a large, custom-built turbine to an energy company in India. Their contract specifies "DEQ Port of Mumbai, India." This means the German manufacturer is responsible for packaging the turbine, handling all export documentation in Germany, arranging and paying for its ocean transport to Mumbai, and ensuring it is safely unloaded from the cargo ship onto the dock at the Port of Mumbai. If the turbine is damaged during the sea voyage or while being lifted off the ship, the German manufacturer is liable. The Indian energy company only becomes responsible for the turbine once it is securely on the quay in Mumbai, ready for customs clearance and onward transport to their power plant.

  Illustration: This example demonstrates DEQ because the seller (German manufacturer) handles all logistics, costs, and risks up to the point of unloading the heavy industrial equipment onto the quay at the buyer's specified destination port (Mumbai), at which point the risk transfers to the buyer (Indian energy company).

• Example 2: Bulk Mineral Ore Delivery

  A mining corporation in Australia agrees to sell a substantial quantity of iron ore to a steel mill in South Korea, with the terms "DEQ Port of Gwangyang, South Korea." The Australian corporation must arrange for the ore to be loaded onto a bulk carrier, manage all export procedures, pay for the ocean freight to Gwangyang, and ensure the ore is unloaded from the ship into the port's designated storage area or onto the dock. If the ore is lost or contaminated during transit or during the unloading process, it is the Australian corporation's financial responsibility. The South Korean steel mill assumes ownership and risk only once the iron ore is safely on the quay in Gwangyang.

  Illustration: Here, the DEQ term ensures the seller (Australian mining corporation) bears the full cost and risk of transporting and unloading the bulk commodity (iron ore) at the destination port (Gwangyang), transferring responsibility to the buyer (South Korean steel mill) only after the goods are physically on the quay.

• Example 3: Project Cargo for Infrastructure

  A Spanish company supplies specialized pre-fabricated bridge sections for a new highway project in Morocco, with the contract stating "DEQ Port of Casablanca, Morocco." The Spanish supplier is obligated to prepare the sections for export, cover all shipping costs to Casablanca, and ensure they are carefully unloaded from the vessel onto the designated area of the port's quay. If a section is dropped and damaged by the port crane during unloading, the Spanish supplier must bear the cost of replacement or repair. The Moroccan highway authority's responsibility for the bridge sections begins only after they are safely placed on the quay in Casablanca.

  Illustration: This example highlights how DEQ places the burden of complex logistics, including the critical unloading phase, squarely on the seller (Spanish supplier) until the goods (bridge sections) are physically delivered onto the quay at the buyer's destination port (Casablanca), thereby clearly defining the point of risk transfer.