Delivered ex-ship (DES)

Describes the pricing point of a commodity (e.g. LNG) after it is transported to a destination port. DES is frequently referred to in the LNG industry, and it is synonymous with CIF (cost, insurance and freight) which is commonly used in other industries, such as the oil sector. The DES price includes cost of freight and insurance for transporting the LNG by ship to the destination port (DES equals FOB plus shipping or port costs). In a DES contract, the buyer takes ownership of the commodity at the destination port, while the supplier is required to pay the costs to transport the cargo to the destination port.