![]() Terminal Handling Charge – This is the cost of loading your goods at the port. This must be submitted by 5 days before the closing date, or your goods will have to wait for the next UK bound vessel. The costs your supplier has to cover are:ĭocument fees – These are the costs to produce all of the shipping documents for your goods.Įntry Summary Declaration (ENS) – The cost paid by your supplier when declaring the goods to the shipping line. On these terms, your supplier covers all costs to get the goods onto the vessel and our quote covers everything from that moment onwards all the way to delivery at your specified address. This is an issue that constantly pops up, so we thought we had better explain it. When buying goods on FOB Shipping terms, your supplier’s responsibilities stretch a lot further than simply transporting the goods to the port of loading. Shippo fob meaning, fob shipping meaning, define fob, fob shipping point, trends All there is to look into now is the Duty and VAT. If your supplier sells you the goods on FOB terms, and you have a quote from us… you’ve got all of the transport costs covered. When we quote on a shipment, it will be based on FOB terms as standard. See our page on which ports are most cost-effective here. The costs vary from different ports, some are more expensive than others. The port is not always the closest one to the seller’s premises as costs and export licences required for each port can differ. If, for example, your supplier offers “FOB Shanghai” terms then they expect your responsibilities start with the freight element from Shanghai to the UK. This is the port from which the seller will ship the goods. The terms of FOB normally includes a reference to a port. You are responsible for the transport cost once the goods are on the water. Explainer VideoĪs the buyer, you are responsible for all the costs once the goods are loaded onto a ship (or plane) in their country of origin, to the arrival of the goods at your door in the UK. After this point, the responsibility then shifts to you. FOB Shanghai, for example, would mean that your supplier is responsible for goods until they’re loaded on the vessel at Shanghai. On FOB terms your supplier is responsible for paying all the costs involved with your shipment until the goods are on a vessel at their outbound port. Using FOB shipping terms means the costs, risks and responsibilities are split fairly equally between the buyer and the seller of goods. Once goods have been loaded onto the vessel the buyer is responsible for any costs and risks involved in the onward shipment. Under FOB shipping terms, the seller is responsible for all costs involved in the process up until the goods are on a vessel at the designated port. There are many Incoterms, however, FOB trade terms are one of the most widely used to import products from Asia to the UK. Incoterms are essentially rules for International Trade they allocate the division of responsibility between the Shipper (usually the supplier) and the Consignee (usually the buyer) in the process of shipping the goods from one to the other. It’s usually the best way to control your shipping costs. In shipping, the term FOB means ‘Free on Board’ ✔️ and refers to a popularly used Incoterm. FOB Shipping | My Supplier’s Responsibilities.FOB Shipping Terms | My Responsibilities. ![]() FOB Free on board FOB stands for 'Free on Board', here's everything you need to know about the popular shipping term:
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