What is FOB-Detailed introduction about FOB?
What is the cost of free on board freight?
What is FOB?
The English abbreviation of free on board price is FOB, free on board is the acronym, Chinese is free on board, also known as "FREE on board", is one of the commonly used international trade terms. The seller makes delivery when the goods pass the ship's rail at the port of shipment within the period specified in the contract and promptly notifies the Buyer. This means that the buyer must bear all risks of loss or damage to the goods from this point. In addition, the seller must handle the relevant formalities for the export of goods. This term applies only to sea or inland waterway transport.
Free on board (FOB) :
Specify whether the buyer is responsible for freight and determine the obligations of each party in dealing with the goods. There are two main types of free freight on board - FOB destination and FOB point of shipment - with several sub-names.
Free on Board is an international trade term issued by the International Chamber of Commerce (ICC) under the Incoterms.
The costs associated with an FOB include transporting goods to the port of shipment, loading the goods onto a ship, shipping, insurance, and unloading and transporting goods from the port of arrival to their final destination.
Types of free destinations on board
Free on Board Destination makes the seller responsible for the goods prior to their arrival, including the cost of loss or damage of the goods. There are several different ways to deal with FOB destination costs.
FOB freight prepaid and allows the named seller to be obligated to pay the freight and to own the goods in transit. The seller bears the risk of loss or damage to the goods in transit. Title to the goods passes to the buyer at the buyer's place of business.
FOB freight prepaid and added that the nominated seller is obligated to pay the freight. However, the seller charges the buyer for shipping. The seller bears the risk of loss of or damage to the goods in transit because the seller owns the goods in transit. Title to the goods passes to the place of business of the buyer.
FOB freight to collect The named buyer must pay the freight upon receipt of the goods. However, the seller bears the risks associated with transporting the goods because the seller still owns the goods during the transportation.
Free shipping point on board
Once the goods arrive by ship, the FOB shipping point releases the seller from all liability for the goods. This makes the buyer responsible for the goods during transit, meaning they pay for the freight and may want to take out insurance to protect themselves if any goods are lost or damaged.
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