The Incoterms – the best terms for importers – Part 1
Incoterms – FOB
As I have written before, the Incoterms is a collection of rules which allocate risks and costs between a contractual parties. I will not harp on all of them again, but I will shortly describe which are THE BEST Incoterms terms for the importers and why it is the FOB shipping port
The Incoterms FOB (shipping port) terms means that a consignor is obliged to deliver at own costs and risk, to specified by us terminal/port and cover costs of loading goods to the vessel, as well as provide an export customs clearance.
In spite of this an importer controls a so called main section of the carriage, its costs, deadlines, etc., but he is not involved in the customs procedures at the shipping place, etc. Not only that, we can choose a supplier of the transportation service in the main section and usually it will be a company which employees speak a language we understand!
From such a company we usually receive an exact offer which will comprise all elements of the freight forwarding puzzle, and in consequence we may with a great dose of probability calculate moderately exact amount of the transportation cost – which has, from every point of view, a serious influence on the final value of the imported goods.
Besides OUR freight forwarder will be strongly interested in doing his job best, counting on the fact that your order will not be a single one, but the first (next) of many others
Here, I would like to emphasise that on the SEAOO.com homepage are calculated transport costs at the FOB (shipping port) terms, and I add, that a presented price includes ALL elements of the cost offer.
We strongly recommend all our customers to apply in the import the FOB (shipping port) terms of the Incoterms.
Soon about the EXW terms of the Incoterms.