Practical Comparison of DDP and COD: Differences in Transport Clauses, Insurance Liability, and Dispute Settlement
In practice, DDP and COD differ in transport clauses, insurance liability, and dispute settlement. In transport clauses, DDP sellers arrange end-to-end transportation, selecting modes, signing contracts, and monitoring processes to ensure on-time, safe delivery. COD sellers only transport goods to the agreed point, with subsequent transport by buyers.
For insurance, DDP sellers must insure goods for the entire journey, covering all risks from export to import. COD sellers typically insure only the export transport phase, with import insurance by buyers. In dispute settlement, DDP sellers bear primary responsibility for issues during transport or clearance, resolving problems and compensating losses. Under COD, post-delivery issues like quality or quantity disputes are negotiated based on contracts and facts. Enterprises should clarify clauses in trade contracts to avoid disputes from unclear liabilities.