Who decides shipping carrier on FOB shipments
Saturday, January 07, 2017     Category : Export

The information provided here is part of Import Export Training online


Who decides shipping carrier on a shipment under FOB basis?



This article is for beginners of exports and imports. In an FOB consignment, who nominates shipping carrier? Whether exporter or importer?


Who decides shipping carrier on FOB shipments copy Shipping carrier is a person or company who carries goods to final destination as per certain terms and conditions under maritime law. Shipping carrier is decided on the basis of terms of delivery contracted by exporter and importer. If cost of carriage is paid by the exporter, the carrier is decided by exporter. If importer pays freight of a consignment, the shipping carrier is decided by importer.


Since the cargo is on FOB basis, the freight has to be paid by buyer. So, the carrier of goods is decided by overseas buyer. The shipper (buyer) nominates a shipping carrier either a freight forwarder or any other mode of transporter to carry goods from the port of supplier of goods and arrange to transport to buyer’s port.  Also read Basic tips to exporter while contracting terms of delivery on DDP or DDU basis       What is FOB price in Exports and Imports and how it works


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The above information is a part of Export Import Training online

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Bharat Raj Says :
Monday, February 16, 2015
i am bharat desai from bijapur. i have a regd export firm , i have also got iec .i am interested in exporting agri commodities as a merchant exporter. i have not done any consignments as on today due to lack of practical experience. please let me know whether you can give personal guidance in each and every step involved in export transaction. i would like to start with small investment and non perishable goods.i will be thankfull to you if you can guide me in this regard, i will also pay the required fees/ ppercentage in FOB value as you feel right.i am planning to start export activities in the month of august.
Ibrah Says :
Monday, March 23, 2015
Hi I want to buy pajero from Japan the price is 4000?? and also they have put 2000?? FOB what does that mean?
Walhekar, Deepak Says :
Tuesday, July 21, 2015
I just viewed your site on the subject matter. Its really interesting. I am commercial manager working with Dow Chemicals, a US based chemical company does imports to India. We operate on two modules, 1) direct indent by the customer on CIF basis wherein we bring material till sea port and 2) we import material, clear & bring it to local stock points and sells in local currency. In later module, we also do bond-to-bond, HSS etc. I would like to learn more on the imports, material flow, document flow, various options / steps / processes involved from FOB till clearning the material, Taxation etc.
Tom Says :
Monday, August 03, 2015
Hi this is a great log. I'm happy to be here thank you. I have2 questions about the fob. I'm about to close a deal with a Chinese supplier the goods cost 20.000$ and the factory is in shenzhen.and it's half of 20 feet freight and the weight is 300 kg. The supplier want 550 $ for fob. Is that the correct price for that? What if next time I'll need full freight. What will be the price? And 2 . If I take fob the supplier arrange the goods and talk to my freight forwarder. And when they load the goods to the ship how I know if the goods are safe?

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