Fob prices what does it mean

Your supplier takes charge of the first half of the process and your freight forwarder takes charge of the second. There are no nasty surprises at the end. This reason is a little harder to explain for people without detailed knowledge about shipping. Think of it like this: The process of shipping has a rough fixed cost for all the services and steps in the process. Shipping terms determine who finds and pays each service. If your supplier is responsible for the payment, you will pay the supplier more to cover these costs.

The point is that shipping should cost you a similar amount on all shipping terms. The problem? Triangular export. Triangular shipment. Importance of Bill of Lading. Introduction to this web site. Is Airway bill a documents of title? Is DP terms of payment safe in export business? Why to insure export goods? Why, best attention while preparing Export Invoice?

Please advice. My Ex-Factory price is Rupee per kg. In Ahmedabad we pay transportation charge. This charge is pay by me or I include this charge in buyers Invoice? Kindly explain. Airfreight to Sydney Australia Order - 20 Pcs. John: On 20 August Thanks so much for the wonderful explanation and for giving a concrete example. Hiren B. It was an indeed pleasure to see your profile in your website howtoexportimport. However, we are need your expert advice on below query. Kindly note that we are an independent consultancy service provider company in India.

In detail process, we purchased from farmer and will supply to bio-pharma company in UK. Kindly suggest us, 1. What are documents required for FOB at Delhi from our side? Would you please tell us where we have to be vigilant during entire process? Look forward for your affirmative respond! Javiya, You may please read our other articles in this website. Don't allow credit card for. D payment but letter of credit which my bank in nigeria seems not ready to give to most of there customer so pls Doc of Bus help me out Tarun Gagwani : On 17 February I wish to start Import of cookware and need your help with costing.

Say I am importing cookware from Newyork on EXW terms, then how do I calculate the cost of bringing the goods to my warehouse in Mumbai? What percentage should I assign to the following costs? We also provide free due dilligence expertise for overseas vendor as a bonus to our services. For more details or online application please feel free to contact us at info listontradefinance. I am sitting in Mumbai and executing this transaction.

I do not know the documentation procedures and which authorities in India are to be involved in this? Do we have a precise plan of action for that? I would really appreciate your guidance and help. Freight prepaid is the opposite. The shipper accepts responsibility for all freight charges and risks. FOB is important for a number of reasons, but most importantly, shippers and carriers need to understand FOB designations in damage situations. Some receiving docks will refuse delivery of obviously damaged goods, rather than accept with a damage notation for future claim against the carrier.

So, the consignee would be refusing delivery of goods it legally owns and bears the risk for. The seller has no legal reason to accept those goods back and the return shipment could possibly result in additional damages. If all of this seems too confusing to follow, see how Freightquote by C.

Robinson can help handle the placement of your shipment for transport. The legal issues raised in FOB designations are nothing new to us here at Freightquote. By utilizing our easy-to-use self-service tools, you can efficiently manage your shipping strategy, should any issues arise. Get Free Quotes. Expert freight shipping tips and fast, easy tools to help you ship freight. Seven steps you can use to improve the shipper-carrier relationship and ultimately benefit your business.

The main difference between the two is who accepts responsibility for goods while they are in transit. With FOB once the goods are on the ship, they are marked as delivered and the purchaser takes control. There are advantages and disadvantages for both parties using either arrangement. With CIF, the seller has the opportunity to mark up the cost of transit and insurance effectively making the transaction of the sale more profitable.

They can also choose the shipping arrangement of their choice and may not look for the best deal if the cost is being passed on. The main disadvantage for the purchaser is the potentially higher cost, but they may be willing to trade this off in exchange for not having to concern themselves with shipping quotes, paperwork, customs and tax.

If the seller is used to CIF, then they will likely have more experience with shipping than the buyer. The main disadvantage of FOB is time.