Why does DPU (Delivered at place unloaded) matter?
DPU gives the buyer a fully delivered load without the cost of unloading equipment or staff. It is useful when the seller has the resources to unload, or when the destination site cannot unload without the seller’s equipment, such as a dock with a tail-lift or a site with heavy machinery. Because the seller carries the risk until unloading ends, DPU places more responsibility on the seller than DAP does, while still leaving import formalities with the buyer.
How does DPU work in logistics?
The seller books carriage to the named destination and arranges the vehicle, route and delivery window. On arrival, the seller’s driver or unloading crew unloads the goods at the agreed point, such as a warehouse dock or a specific yard bay. Once the goods are unloaded, risk passes to the buyer. The buyer then handles import clearance and any duties. If the buyer’s site requires a particular unloading method, this must be agreed in the contract.
DPU vs. Other Incoterms
- FOB (Free on Board) – Seller pays to loading port; buyer assumes risk once loaded
- CIF (Cost, Insurance and Freight) – Seller pays freight and insurance to port; buyer assumes risk once loaded (sea freight only)
- CPT (Carriage Paid To) – Seller pays freight to named destination; buyer assumes risk once handed to first carrier (all modes)
- CIP (Carriage and Insurance Paid To) – Seller pays freight and insurance to named destination; buyer assumes risk once handed to first carrier (all modes)
- DAP (Delivered at Place) – Seller pays all freight and duties to named destination; buyer assumes risk upon arrival at destination
- DPU (Delivered at Place Unloaded) – Seller pays freight and unloads at named destination; buyer assumes risk once goods are unloaded
- DDP (Delivered Duty Paid) – Seller pays all freight and duties to named destination and handles all customs; buyer assumes risk upon arrival with no remaining obligations
Example in practice
A furniture manufacturer in Munich, Germany sells 40 wardrobes to a retailer with a warehouse in Kraków, Poland, under DPU terms to the Kraków warehouse. The manufacturer books a box-truck with a tail-lift, which leaves Munich on Monday and drives via Nuremberg and Prague to Kraków, arriving on Tuesday morning. The seller’s driver unloads the 40 wardrobes onto the warehouse dock using the tail-lift. Once the last wardrobe is on the dock, risk passes to the Polish retailer. Because both countries are in the EU, no import clearance is needed, and the buyer simply signs for the delivery.