Monday, 5 December 2011

Diesel Generator Terms of Delivery: FOB vs ExWorks

There are indeed many different methods of actioning payment for and in receipt of diesel generators. What can hinder this process is a misunderstanding between the two parties (buyer and seller) about the actual terms of delivery.

Each dealership / manufacturer of new or used diesel generators will have their own preferred method - and who's to say which is right or wrong. But like with most things regarding the purchase of diesel generators, communication is ultimately key.

The two most common options regarding terms of delivery of diesel generators these days seems to be "FOB" (Fully On Board) or "ExWorks".

The former requires the seller to source and provide a package that includes all transportation and insurance (against loss or damage) of the goods from their depo to the buyers selected delivery point. This can be very useful for the buyer, as it removes the headache of booking suitable transportation and insurance - it is, to be frank the easier option for the buyer.

The latter, ExWorks, is the opposite to FOB whereby the buyer makes all the transportation and insurance arrangements for getting the diesel generator from A to B safely. Due to the nature of this agreement buyers get a greater sense of control over when and where their stock will arrive.

From our experience, at, we encourage our customers to opt for the "ExWorks" option. Why? It's simply, transparency. Because the buyer has arranged the transportation of the Diesel Generator they know exactly what they are paying for transportation. We've heard numerous horror stories of suppliers lumping great big FOB admin/handling fees onto buyers - so beware!

If you need power generators then please contact or visit us at our website - we promise to listen to you and find the generator right for you, not for us.


Mr Fadel Takrouri

Managing Director,



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