* Are you confused about the concept of FOB terms?
What role does it play in freight forwarding? * Do you want to learn details about FOB conditions in Incoterm 2010 for sellers and buyers?
* Do you want to find a business with long-term experience in transferring sea goods under FOB terms?
Any issues you are concerned about or have questions about FOB conditions , Proship.vn will answer in the most detailed way to effectively support the seller and buyer during the shipping and delivery process as requested. buyer's demand. In addition, Proship.vn also helps you get more information about sea transport service packages that apply according to FOB Incoterm 2010 regulations, along with how to use FOB most effectively.
Shipping contact hotline:
Ms Tien: 0909 986 247
Ms Dung: 0939 999 247
Ms Duy: 0902 581 247
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Proship accepts transportation, import and export of sea goods under FOB terms
With the advantages and characteristics of shipping goods by sea , on the market today there are many businesses providing this service. However, you need to choose wisely by choosing a partner who can provide you with the most perfect and comprehensive quality of shipping services according to FOB Incoterm 2010 conditions without exceeding the allowed budget target. .
Proship has many outstanding advantages compared to other competitors
- LCL cargo shipping service across countries: Proship collects LCL containerized cargo from Vietnam to countries such as China, Australia, Japan, America,... helping customers save maximum costs & time
- Market advantage: Along with the domestic market and other regions, Proship has strengths in international markets such as the US, Australia, Japan, China,...
- Containerized cargo: Because of a significant amount of freight purchases and strategic partnerships with many large shipping lines, Proship provides a series of effective sea freight solutions that best meet time requirements. with competitive shipping rates for customers.
- Safe and convenient warehouse: Convenient location for picking up goods, supervising packing, and transferring goods to the port. Proship owns a professional and modern fleet of trucks and containers, committed to quickly and flexibly collecting and packing goods.
Sea freight rates are calculated based on many factors
- How heavy is the volume of goods that need to be transported from one seaport to another?
- Policy on freight rates that the shipping unit is applying
- Where is the final address where the goods were delivered and received?
- How to classify goods and size of goods?
- Do you need to pay attention or store the goods in special conditions (fragile goods, easily leaking goods, frozen goods, etc.)
- Additional fees arise due to customer requests.
What are FOB terms?
What is FOB? FOB is one of the frequently encountered conditions in international sales contracts. If you are an import-export, logistics employee, etc., of course, understanding these conditions is really necessary.
FOB condition is an abbreviation for the English phrase "Free On Board", meaning free of responsibility on the deck of the ship of departure, also known as "Delivered on board". It is a term in international trade, expressed in Incoterm. Similar to FAS but the seller needs to pay the shipping fee.
The transfer takes place when the goods pass the ship's rail at the port of loading. Internationally, this term designates the port of loading, for example “FOB New York” or “FOB HCM”. Other costs such as freight and insurance fees are the responsibility of the buyer.
FOB delivery terms are quite frequently used terms. FOB should be used for water transport. It is recommended that if shipping by sea by Container, you should use FCA terms. FOB is widely used so it has become a habit and trade practice in many countries around the world today.
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Shipping contact hotline:
Ms Tien: 0909 986 247
Ms Dung: 0939 999 247
Ms Duy: 0902 581 247
Learn details about FOB Incoterm 2010 conditions
After learning about FOB terms, the seller and buyer need to clearly understand the detailed information about FOB Incoterm 2010 directly related to the parties' obligations as follows:
| RESPONSIBILITIES OF THE SELLER | BUYER'S RESPONSIBILITY |
| General obligations of the seller : The seller delivers the goods (on board), provides a commercial invoice or equivalent electronic document, provides proof of delivery | Payment : The buyer pays the seller for the goods according to the commitment in the contract |
| Licenses and procedures : The seller carries out export procedures and provides an (export) license for the shipment to be exported. | Licenses and procedures: The buyer must prepare an export license (available from the seller) and complete customs procedures according to regulations so that the goods are allowed to be imported into their country. |
| Contract of carriage and insurance : Contract of carriage covers carriage from inland warehouse to named port at the seller's expense and risk. The costs and risks of this contract will end once the goods are delivered over the ship's rail or placed on the ship's deck, depending on the agreement. The insurance contract for the goods in this case is not mandatory for the seller. | Contract of carriage and insurance: The buyer bears the cost of transporting the goods from the named port of departure to the final destination (Port of discharge or inland warehouse). For insurance contracts, the buyer is not required to purchase within This is the case, unless the buyer wants his goods to be more secure. |
| Delivery : The seller transports the goods to the named port of export and bears the costs of bringing the goods on board the vessel. After this time, delivery is considered complete | Receiving goods : The buyer receives the goods in his possession after they are loaded at the named port of destination. |
| Transfer of risk : After completing delivery on board (On board), all costs and risks of the seller are transferred to the buyer. | Transfer of risk : Risk is transferred by the seller to the buyer from the time the goods are delivered over the ship's rail. This risk is damage and loss of goods that may occur during transportation. If the ship at the port of departure is delayed, the seller must bear all costs incurred. |
| Freight : The seller bears the costs until the goods are delivered on board, including customs clearance costs, taxes and additional fees incurred. | Freight : The buyer pays freight from the time the goods are delivered over the ship's rail. The costs the buyer must pay to transport the goods to the final destination include freight, insurance (if any), taxes and other additional charges. |
| Information to the buyer : The seller notifies the buyer that the goods have been delivered over the ship's rail at the seller's expense. | Notice to seller : The buyer notifies the seller that the goods have been loaded on board the named vessel, at the named port specified in the contract of sale. |
| Proof of delivery, shipping documents or equivalent electronic documents (EDI) : The seller provides the buyer with proof of delivery of the goods on board – that is, a transport document delivering the goods from the warehouse to the port. Go. Many countries use and accept the EDI system - Electronic Data Interchange - a system that helps exchange electronic data and connect with businesses around the world. EDI can help store and exchange documents between the buyer and seller quickly and effectively. | Provide proof of delivery, shipping documents or equivalent electronic documents: The buyer is responsible for providing the seller with proof of shipment of goods (Normally a Bill of Lading). Lading or Sea way bill) |
| Inspection - Packaging - Symbol of goods : The seller bears all costs for inspection, quality management, measurement, weighing, counting, packaging and marking of goods. If the goods require special packaging, the seller must notify the buyer and pack only the additional costs paid by the buyer or added to the selling price. | Inspection of goods : In case the goods are required to be inspected by customs (exporting country), the buyer must bear all costs incurred. |
| Other Support : The Seller is obliged to provide timely assistance in securing the information and documents necessary for shipping and delivery to the final destination. | Other obligations: The buyer pays all costs incurred (including freight and surcharges) to obtain necessary documents (including documents in electronic form). |
Notes when using FOB (Free On Board) terms
Sellers and buyers should note that FOB terms only apply to shipping methods by sea and inland waterways. According to the regulations in FOB terms, even if the shipping company requires the seller to deliver the goods/deliver the container at an ICD or a major seaport, when the goods are on the ship, the seller is no longer responsible for all risks. Specifically, in cases where the shipping company requires the seller to unload the container at the ICD, the route from the ICD to the port is usually arranged by the shipping company itself because the shipping company and the seller cannot control the risks. return goods all the way.
If an unexpected risk occurs, the seller must be responsible, not the buyer. It can be roughly understood that the conflict here is that the shipping company (hired by the buyer) made a mistake in shipping from ICD to a major seaport, causing the goods to be damaged but the seller must bear this damage. Therefore, it should be noted that if the seller delivers goods by Container, the shipping company requires the seller to deliver the goods at ICD as above, then the seller should switch to using FCA terms instead of using FOB to be able to finish. responsibility immediately after delivering the goods to the shipping company at ICD.
Proship has just shared the concept of what FOB conditions are, detailed information about the obligations of the seller and the buyer . Interested readers can read and read to clearly understand what they need to do and what they should do. to clearly define specific roles in each case. If you have any questions related to FOB & other conditions in Incoterm 2010, please contact hotline 0909 344 247 for free advice on the delivery service package to the destination port you are interested in. Please.
Shipping contact hotline:
Ms Tien: 0909 986 247
Ms Dung: 0939 999 247
Ms Duy: 0902 581 247
