What is FOB? Why it is important for my shipment

Shipping goods internationally or domestically involves lot of freight terms which are new to understand which are used by Freight forwarders and shipping companies. Let us go through some important terms about your shipment.








FOB:

What does FOB stand for? It indicates Free On Board. It is a term in international commercial law the physical location at which liability, obligation, cost, and risk for the shipment has to transfer from the shipper to the receiver. International shipment has more importance of FOB than domestic shipment because many parties are involved in it.
FOB on Shipping Documentation:
FOB is listed in several different ways on shipping documents and each has a different meaning.
FOB Origin: The buyer-Pays freight charges, bears freight charges, owns goods in transit, is responsible to file claims (if necessary)
FOB Origin, Freight Collect: The buyer-Pays freight charges, bears freight charges, owns goods in transit, is responsible to file claims (if any) 
FOB Origin, Freight Prepaid: The Seller-Pays freight charges, bears freight charges
The buyer-Owns goods in transit, is responsible to file claims (if necessary) 
FOB Origin, Freight Prepaid & Add: The seller-Pays freight charges upfront but adds the charges back to the invoice for the buyer to later pay
The buyer-Bears freight charges, owns goods in transit, is responsible to file claims (if necessary) 
FOB Destination: The seller-Pays freight charges, bears freight charges, owns goods in transit, files claims (if necessary) 
FOB Destination, Freight Collect: The buyer-Pays freight charges, bears freight charges Seller-Owns goods in transit, is responsible to file claims (if necessary) 
FOB Destination, Freight Collect & Allow: The buyer-Pays freight charges, 
The seller-Bears freight charges, he owns goods in transit, files claims
FOB Destination, Freight Prepaid: The seller-Pays freight charges, bears freight charges, owns goods in transit, is responsible to file claims (if necessary)

The above rules are published by International Chamber of Commerce (ICC).
Connect cargo is unit of Jayem Logistics providing Ocean/freight forwarding services, Project(ODC)Forwarding, Customers Brokerage, Warehousing Transportation &Distribution, D/G Perishables. We are a system & process oriented company with total commitment towards the Customers’ need for a cost-effective quality solution. This is the result of our belief that quality is the outcome of intelligent effort, and never an accident.
Request a Quote or Call Us (044 – 4606 5555) to ship today.


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