What Is Ex Works (EXW)?

By Kristi Waterworth – Updated Sep 14, 2025 at 3:50 PM

Key Points

EXW agreements shift transport costs to buyers, reducing seller liabilities.
Buyers gain from EXW if they bundle goods for shipping, potentially reducing costs.
Alternatives to EXW, like FOB and DDP, vary in seller and buyer responsibilities.

Although it might not seem important for investors to know shipping lingo, understanding some common types of international trade shipping agreements can help you better grasp how your favorite companies do business. EXW, short for “ex works,” is a type of shipping agreement where the buyer assumes responsibility and costs for transporting goods beyond a designated point.

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Shipping containers being moved in cargo yard. — Image source: Getty Images.

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Supply Chain Management (SCM)

Supply chain management is the act of overseeing and directing the entire process of creating a product or service, getting it to the customer, and handling returns if needed.

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About the Author

Kristi Waterworth has been a contributing real estate and financial expert at The Motley Fool, covering real estate, investing, and personal finance topics, since 2020. Kristi has been interviewed by various TV media outlets and podcasts for her real estate investing expertise – from residential real estate to digital real estate and everything in between. Kristi’s journalist career spans over 25 years, and she has written about real estate investing, homeownership, and home construction specifically for the last decade. She was also previously a licensed Realtor and general building contractor before the Great Recession and housing market collapse. She holds a bachelor’s degree in American history from Columbia College in Missouri.

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