FOB （Free on Board）也称为离岸价，即装运港船上交货。按FOB进行的交易，买方负责派船接运货物，卖家应在合同规定的装运港和规定的期限内将货物装上买方指定的船只，并及时通知买方。货物在装运港被装上指定船时，风险即由卖方转移至买方
FOB (Free on Board) is also known as FOB, i.e. FOB on board at the port of shipment. In FOB transactions, the buyer is responsible for dispatching ships to pick up the goods. The seller shall ship the goods to the vessel designated by the buyer at the port of shipment and within the specified time limit stipulated in the contract, and notify the buyer in time. When the goods are loaded on the designated vessel at the port of shipment, the risk is transferred from the seller to the buyer.
Under FOB terms, what are the costs to be borne by the shipper?
Conventional payable expenses
We all know that under FOB conditions, shippers generally only need to be responsible for the port of departure expenses, i.e. pre-shipment expenses, including: pick-up fees, packing fees, port incidental charges, port security charges, bill of lading fees, bill of lading entry fees, terminal operating fees (THC) or surcharge of origin (ORC), lead sealing fees, customs clearance fees, etc.
Special attention should be paid to the declaration fees of AMS and ENS in the United States and EU, because they are all declarations before shipment at the port of departure, so these fees also belong to the expenses incurred before "offshore" and should generally be borne by the shipper. Of course, except that the customer promised to bear this part of the cost.
Expenses for contingencies
1. Expenses incurred by improper connection of ship and cargo
FOB, ship-cargo connection is the key. If there is no timely loading and unloading on board the vessel, the cargo holder will bear the empty charge and demurrage charges; conversely, the cargo holder will bear the overdue container handling charges and warehousing charges if the cargo is loaded too early. Therefore, FOB should confirm the time of shipment and the port of shipment again and again, maintain close communication and ensure the convergence of cargo and ship.
2. Costs incurred by unattended delivery at destination port
For some reason, the consignee did not pick up the goods or pay the freight after the goods arrived at the destination port. At this time, the carrier could not recover the freight in time, but also faced with the situation that the goods would be auctioned by the local customs or generate high storage costs. Therefore, it is possible to request payment from the consignee first, and then turn to the consignor if it fails.
Maritime Freight: In principle, the consignee should bear the cost first. When no one takes delivery of the goods, it may be transferred back to the consignor to bear the cost.
Delivery: First, notify the consignee to take delivery, no one takes delivery, notify the consignor to handle, such as return or resale, etc.
Delay charges and delaying charges at destination port: Delaying charges and delaying charges may be required to be borne by the shipper if no one takes delivery of the goods.
3. Highly designated agency costs
Designated freight forwarders often pay much more than ordinary freight forwarders. This is because the consignee appoints the consignee, that is, the contract of carriage between the consignee and the consignee, not the seller. The forwarder is responsible to the consignee.
There is no direct contractual relationship between the shipper and the forwarder, and there is generally no possibility of negotiation. Therefore, the designated freight forwarder will give a series of costs at the port of departure, which will be relatively higher than that of the ordinary freight forwarder. This part of the difference, if not very excessive, in order to smooth delivery of goods, shippers have to bear the pain of accepting high cost standards.
4. Compensation for damage to goods
When the goods are checked out at the destination port, the consignee is generally responsible for the damage found under FOB conditions. And the consignee usually buys insurance and can apply for insurance compensation. But if not, the consignee may still negotiate with the consignor.
If the damage is caused by the shipper's packing, careless inspection cabinet or other special circumstances before boarding the ship, the shipper is liable for the damage to some extent, which needs to be dealt with through consultation and should be compensated accordingly. If it can prove that it is not our responsibility, we can take out the packing photos, packing list or other supporting information and let the consignee claim from the ship.
5. Loss of delivery without bill of lading
Under FOB terms, shippers are more designated freight forwarders than designated shipping companies. However, due to the close business relationship between the designated forwarder and the consignee, it is very likely that the designated forwarder will deliver the goods directly to the consignee without recovering the original bill of lading, i.e. delivery without bill of lading, which results in the fact that the consignor has emptied the bill of lading, resulting in heavy losses.
6. The "Soft Pit" of Letter of Credit
The soft clause of L/C is the clause set by the applicant in the L/C. Such clause will threaten the beneficiary's safe collection of foreign exchange, and bring the applicant the benefit of trading initiative or fraud of goods and advance payment, which is concealed.
If the shipper fails to pay attention to the fact that the documents submitted are inconsistent with the letter of credit, payment will be refused, and the shipper will fall into a passive position after shipment, in a dilemma of advance and retreat, and the payment will be damaged.
We must have a sense of risk control in shipping.
If you can strive for CIF or CFR, try not to use FOB trade terms.
We will strive to replace the freight forwarding bill of lading with the shipping company bill of lading.
When accepting a designated forwarder, the qualification of the forwarder must be carefully examined.
Attention must be paid to controlling the ownership of the goods.
Bill of lading should be issued with great care. It is not acceptable for the other party to be the shipper of the bill of lading. At the same time, we should try not to accept nominated bills of lading, nor to make bills of lading on the instructions of the consignee, but to make bills of lading on the instructions of the consignee.
Insurance of land transportation insurance to eliminate the insurance blind zone from shipper's warehouse to the port of shipment.
The contract and letter of credit must be examined carefully to avoid soft clauses and strictly comply with the requirements of the contract and letter of credit when issuing documents.
To avoid and transform risks, relevant export credit insurance should be insured.