Who decides shipping carrier on FOB shipments Posted on 11 April 2023 Category : Export The Buyers and Sellers are suggested to use Incoterms 2020, the latest version of delivery terms for movement of goods. Click here to read the extract of Inco Terms 2020, easily explained. 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? 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 Do you wish to add more information about this subject - who decides shipping carrier under an FOB shipment? Would you like to share your experience about this subject on shipment under FOB and appointment of shipping carrier under FOB shipment? The Buyers and Sellers are suggested to use Incoterms 2020, the latest version of delivery terms for movement of goods. Click here to read the extract of Inco Terms 2020, easily explained. Write below your thoughts about this article - Who decides shipping carrier on FOB SHIPMENTS? The Buyers and Sellers are suggested to use Incoterms 2020, the latest version of delivery terms for movement of goods. Click here to read the extract of Inco Terms 2020, easily explained. Other posts about Import Export online tutorial Transhipment - A redefinition What is Terms of Delivery in Imports and exports Easy tips while deciding terms of delivery in export business: What is DDP terms in an export Import Business? How C&F terms of delivery works in Export Import business What is FOB price in Exports and Imports and how it works Difference between BRC and FIRC What is customs bonded area in exports and imports Bank Release Order (BRO) or Bank Delivery Order in Imports Mode of payments in international trade What is Terms of Delivery in Imports and exports Difference between Demurrage and Detention in import How to start Export Business? How to get Export Orders? What are the risks and solutions in Export Business? Click here to know India Trade Classification(ITC) Service Tax - Click here to read complete notification under Budget 2014 What is Bank post shipment credit to exporters? Types of export containers Measurement of export containers Exim Policy of India 2015-20 MEIS, Merchandise Exports from India Scheme SEIS, Service Exports from India Scheme Merge your Commercial Invoice and Packing List for all your future exports Export procedures and documentation Difference between standard dry container and Open Top Container How to import Prepared vegetables, Prepared fruits, Prepared nuts Guidelines to importers of Prepared Cereals, Prepared Flour, Prepared starch and Prepared Milk Import processes of Cocoa and Cocoa products Trade Facilitation Agreement ( TFA) and India Period of post shipment credit to exporters How does a Running bond work? How does CENVAT Credit work? Import General Manifest (IGM) Importance of Bill of Lading Procedure to Import Ships and Floating Structures How to Import Musical Instruments, Parts and Accessories Procedures to Import Clocks, Watches How to import Optical, Photographic, Medical Instruments and Accessories Types of Export Containers Dimension of Cargo Containers Difference between standard dry container and Flat rack container Types of Export Containers Dimension of Cargo Containers Common tips to importers of Sugars and Sugar ConfectioneryHow to protect parties each other in triangular exports Is letter of credit safe mode of payment? IGM amendment (Import General Manifest Amendment) Import clearance under high sea sales Is Customs House Agents (CHA ) required to be appointed mandatory? How does Letter of Credit work? How does STP units work in India? Government rules to import Slag, Ores and Ash Importation of salt, earth stone, lime cement How to import Tobacco and Tobacco Substitutes Tips to importers of Prepared Animal Fodder Types of Export Containers Dimension of Cargo Containers The term LCL. What does LCL mean? Difference between normal container and Hard Top Container How to import Prepared vegetables, Prepared fruits, Prepared nuts Guidelines to importers of Prepared Cereals, Prepared Flour, Prepared starch and Prepared Milk Import processes of Cocoa and Cocoa products Are Construction contractors eligible for Packing credit? Conditions of Bank to provide Export Packing Credit to Sub-Suppliers Packing credit pre shipment finance to suppliers for exports through other export agencies Comments Bharat Raj : On 16 February 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 : On 23 March 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 : On 21 July 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: On 03 August 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? Pradeep Mhaskar: On 31 March 2021 Hello ! I am in international business development - covering exports from India, Imports into India as well export from a foreign country to another 3rd country... The above answer is fine however in real situation - many times even if the shipment terms are FOB and the shipping line is nominated by the buyer they ( Buyer ) still expect the shipper / exporter to use their forwarder to get the booking on the vessel this definitely involves additional time and money.