Certified in Logistics, Transportation and Distribution (CLTD) 2025 – 400 Free Practice Questions to Pass the Exam

Under EXW (Ex Works) shipping terms, the buyer indeed must arrange for shipping and take delivery at the seller's location. This term places the responsibility on the buyer to take action, which includes organizing the logistics required to transport the goods from the seller’s premises or another named place.

The terms of EXW mean that the seller's obligation to the buyer is fulfilled once the goods are made available for pickup; therefore, from that point onward, the buyer assumes all risks and costs associated with transportation. This includes coordinating with carriers, managing shipping arrangements, and ensuring the goods are collected from the seller.

While it's true that the buyer pays for all shipping costs, this is a broader implication of their responsibilities once they handle shipping from the seller's point, hence the primary focus under EXW is on the requirement to arrange shipping and take delivery.

Although insurance is a vital aspect of logistics, under EXW, the buyer's responsibilities do not extend to arranging insurance unless they choose to do so as part of their logistics planning. Furthermore, stating that the buyer has no obligations until delivery contradicts the EXW stipulations, as the buyer is heavily involved starting right from the seller's location. Therefore, the assertion that the buyer must arrange