Legal Definitions - ex ship

Ex Ship is a shipping term that defines the precise point at which responsibility for goods transfers from the seller to the buyer during international trade.

Under an "ex ship" agreement, the seller is responsible for delivering the goods to the specified destination port and ensuring they are unloaded from the vessel. The seller bears all costs and risks associated with the goods, including transportation and insurance, up to the moment the goods physically leave the ship. Once the goods have been successfully unloaded from the ship and are on the dock or quay, the risk of loss or damage, along with any further costs for handling, storage, or onward transportation, shifts entirely to the buyer.

• Example 1: Agricultural Produce Shipment

  A fruit exporter in Ecuador sells a large shipment of bananas to a distributor in Miami, with the contract specifying "ex ship" delivery to the Port of Miami. The bananas are loaded onto a refrigerated cargo ship. During the voyage, the ship's refrigeration unit malfunctions, causing some spoilage to the bananas. However, the remaining bananas are successfully unloaded from the ship at the Port of Miami.

  Explanation: In this scenario, the Ecuadorian exporter (seller) is responsible for the bananas until they are unloaded from the ship. Since the spoilage occurred *during the voyage* while the bananas were still on the ship, the exporter would be liable for the damaged produce. The risk had not yet transferred to the Miami distributor (buyer) because the goods had not yet left the vessel.

• Example 2: Industrial Equipment Delivery

  A manufacturer in Japan sells a specialized piece of factory machinery to a company in Australia under "ex ship" terms, destined for the Port of Sydney. The machinery arrives safely and is carefully lifted by crane from the ship's hold onto the port's loading dock. A few hours later, while the machinery is awaiting customs clearance on the dock, a sudden, unexpected storm causes a large container to fall from a nearby stack, damaging the newly arrived machinery.

  Explanation: Here, the Japanese manufacturer (seller) fulfilled their obligation by delivering the machinery to the Port of Sydney and ensuring it was successfully *unloaded* from the ship. Once the machinery was placed on the loading dock, the risk of loss or damage transferred to the Australian company (buyer). Therefore, the Australian company would be responsible for the damage caused by the falling container, as it occurred *after* the goods had left the ship.