The FOB Incoterm is used for transport by ship and the seller transfers responsibility for the goods to the buyer at the time the goods are deposited on board the ship. This term is followed by the agreed port of loading.
Depending on the type of cargo to be transported, it is not advisable to use this Incoterm even if the transport is by ship. For example, if the cargo is included in a container, it would be more appropriate to use a multipurpose Incoterm since the container is an intermodal transport unit, i.e., it is compatible with both ship and truck or rail.
If we were to purchase goods from China and the Incoterm used in the transaction was FOB Shenzhen port, the seller would fulfill his obligation at the time the cargo was on board the ship. Inland transportation costs in the country of origin, loading costs at the port of Shenzhen, export customs formalities and the responsibility for the goods up to that point would be borne by you. Once the goods are on the ship, we are responsible for the international transport costs, insurance, import customs formalities, cargo handling costs at destination and inland transport.
If you need any clarification do not hesitate to leave a comment.
Below is a list of the entries:
– EXW
– FCA
– FAS
– FOB
– CFR
– CIF
– CPT
– IPC
– DAT
– DAP
– DDP
If you want to import from China, do not hesitate to contact us without obligation.
