Explore the importance of Incoterms in international trade and their impact on the European logistics market. Incoterms is an international standard on the rights and obligations of the buyer and seller in the international transportation of goods.
Incoterms, or International Commercial Terms, play a crucial role in defining the responsibilities and liabilities of buyers and sellers in global trade. In the European logistics market, understanding and correctly applying Incoterms is essential for seamless and cost-effective international transactions. These terms, including EXW, FOB, CIF and DAP, govern everything from the point of origin to the final destination of the goods. For example, EXW and FOB give buyers more control over the transportation process, while other terms imply that sellers take charge. Interestingly, CIF prices are often quoted initially, but there is flexibility to offer prices based on different terms. Neele-Vat, with its extensive experience in international logistics, recommends choosing EXW or FOB, allowing maximum control while using our expertise to manage transportation to your specified destination. We will elaborate on each Incoterm and offer valuable insights for navigating the European logistics landscape.
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FOB - Freight free on board (agreed port of shipment)
Under the ICC Incoterms® Free On Board (FOB) rule, the seller is responsible for loading the goods aboard the vessel designated by the buyer. Cost and risk are transferred from seller to buyer once the goods are actually placed aboard the vessel.
FOB is a maritime delivery condition and is not suitable for container shipping.
Characteristics:
Delivery: the seller must deliver the goods by loading them aboard the vessel named by the buyer at the agreed port of shipment.
Transport risk: the risk of damage to or loss of the goods is borne by the buyer from the time of delivery. Prior to delivery, the seller shall bear this risk.
Transportation costs: the cost of transportation shall be borne by the buyer from delivery. The costs of pre-carriage and loading are for the seller.
Customs formalities: the seller must take care of all customs formalities arising from the export. For his account are also the costs, duties and taxes arising therefrom. Customs formalities, costs, duties and taxes shall be borne by the buyer upon importation into the country of destination.
Transportation insurance: neither party is required to obtain insurance for the goods.
Addition place of delivery: the condition of delivery must always add where the transfer of the goods takes place. With FOB this is indicated with: ... agreed port of shipment (... named port of shipment).
At Neele-Vat, we provide efficient and reliable handling of your ocean freight. We offer secure shipping, smart cargo management and customized logistics solutions. Whether you have a one-time shipment or regular shipments, we have the right expertise. Request a quote today and discover the benefits of our ocean freight services!
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