FOB (Free On Board...named Port of shipment)

Translated as “delivery on board” at the port of shipment, it means that the seller delivers the goods to the ship designated by the buyer at the agreed port of shipment. According to the interpretation of FOB of the International Chamber of Commerce:

The basic obligations of the seller:

(1) Handle export customs clearance procedures, and bear all costs and risks of transporting the goods to the ship’s rail at the port of shipment.

(2) During the agreed shipping period and port of shipment, the goods shall be loaded on the ship designated by the buyer according to the customary methods of the port, and the buyer shall be notified of the shipment.

(3) Submit the agreed documents or corresponding electronic information (EDI) to the buyer.

The basic obligations of the buyer:

(1) Charter the ship on time and open at the agreed port of shipment to pick up the goods, pay the freight, and notify the seller of the name of the ship and the date of arrival and loading at the port.

(2) Bear all kinds of expenses incurred when the cargo crosses the ship's rail at the port of shipment and all risks of loss or damage to the cargo.

(3) Receive receipts or corresponding electronic information and pay the loan according to the contract.

Variations in FOB terms

(1) FOB Liner Terms means that the loading fee is handled according to the liner method, that is, the seller does not bear the loading fee, but it does not mean that the FOB transaction must be shipped by liner. As for who bears the loading fee, Depends on the charter conditions adopted by the buyer when chartering the ship.

(2) FOB Under Tackle The seller only delivers the goods to the hook of the ship designated by the buyer, and the seller will not bear the cost of subsequent loading.

(3) FOB Stowed (FOB Stowed) In order to ensure the proper placement and distribution of the cargo on board, the cargo needs to be padded and sorted after being loaded on the ship, that is, stowed, and the seller shall bear the stowed fee.

(4) FOB Trimmed After the cargo is loaded on the ship, in order to maintain the balance of the pressure on the ship and the safety of navigation, the bulk cargo loaded into the cabin needs to be mobilized and leveled, that is, trimmed, and the seller shall bear the burden. This fee.

US shipping FCL Mason present cabin

CFR(Cost and Freight... named port of destination)

Translated as cost plus freight, it means that the seller must bear the cost and freight required to transport the goods to the agreed destination port. The cost here is equivalent to the FOB price.

The basic obligations of the seller:

(1) Provide the goods stipulated in the contract, be responsible for chartering and booking the space and pay the freight, and load the ship at the port of shipment on time, and give the buyer a sufficient notice of the shipment after the shipment.

(2) Go through the export customs clearance procedures, and bear all the risks of the goods until they reach the ship’s rail at the port of shipment and the cost of delivering the goods to the ship at the port of shipment.

(3) Provide relevant documents or corresponding electronic information as stipulated in the contract.

The basic obligations of the buyer:

(1) Bear the risk of loss or damage to the cargo when the cargo crosses the ship's rail at the port of shipment, as well as the additional costs caused by the incident after the cargo is loaded on the ship.

(2) Receive the goods at the port of destination specified in the contract, and go through the import customs clearance procedures and pay import taxes.

(3) Receive various documents or corresponding electronic information provided by the seller, and pay according to the contract.

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