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    FOB1

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    Trung Bùi Quốc
    This document discusses the shipping term Free on Board (FOB). FOB defines the point where responsibility transfers from seller to buyer during international transport. Under FOB, the seller is responsible for delivery of goods to the ship and the buyer is responsible for costs and risk of loss once the goods are loaded on board. The document compares FOB to similar terms FAS (Free Alongside Ship) and FCA (Free Carrier), and outlines obligations and risks for buyers and sellers under each term.

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    FOB1

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    Trung Bùi Quốc
    20 views28 pages
    This document discusses the shipping term Free on Board (FOB). FOB defines the point where responsibility transfers from seller to buyer during international transport. Under FOB, the seller is responsible for delivery of goods to the ship and the buyer is responsible for costs and risk of loss once the goods are loaded on board. The document compares FOB to similar terms FAS (Free Alongside Ship) and FCA (Free Carrier), and outlines obligations and risks for buyers and sellers under each term.

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    This document discusses the shipping term Free on Board (FOB). FOB defines the point where responsibility transfers from seller to buyer during international transport. Under FOB, the seller is responsible for delivery of goods to the ship and the buyer is responsible for costs and risk of loss once the goods are loaded on board. The document compares FOB to similar terms FAS (Free Alongside Ship) and FCA (Free Carrier), and outlines obligations and risks for buyers and sellers under each term.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    20 views28 pages

    FOB1

    Uploaded by

    Trung Bùi Quốc
    This document discusses the shipping term Free on Board (FOB). FOB defines the point where responsibility transfers from seller to buyer during international transport. Under FOB, the seller is responsible for delivery of goods to the ship and the buyer is responsible for costs and risk of loss once the goods are loaded on board. The document compares FOB to similar terms FAS (Free Alongside Ship) and FCA (Free Carrier), and outlines obligations and risks for buyers and sellers under each term.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 28

    Free on board - FOB

    Table of contents

    01 Overview of FOB

    Comparison among
    02 FOB, FAS and FCA
    01
    Overview of FOB
    1.1. Definition

    Free on Board (FOB) is a shipment


    term that defines the point in the
    supply chain when a buyer or seller
    becomes liable for the goods being
    transported.
    1.2. In case of use:

    Fulfill the delivery Have to do the export


    responsibility formalities for the
    shipment

    Not require to contract for carriage and


    purchase insurance for export
    shipments
    1.3. Obligation,
    Adv/Disadv of
    Seller, Buyer:
    Obligation
    Obigation Seller Buyer

    • Voyage chartering:  the


    seller loads their goods Takes responsibility for
    Delivery on the quay the cargo when it is
    loaded on the ship
    • Liner Chartering:  The
    seller delivers containers
    to C/Y
    Obigation Seller Buyer

    At the board (on boat)


    Transfer of At the board (on boat)
    risk
    Obigation Seller Buyer

    • Booking

    Carriage No obigation • Sends the information of


    booking to the seller right
    when it is confirmed
    Obigation Seller Buyer

    Insurance No obigation No obigation


    Obigation Seller Buyer

    Transfer all documents


    Transport to the buyer when the Collect related documents to
    document goods have been loaded receive the cargo
    on board
    Obigation Seller Buyer

    Export/Import  Export clearance at POL


    Import clearance at POD
    clearance
    Obigation Seller Buyer

     Must pay any kind of fee


    Must pay  freight and any
    before the board, such as:
    Fees Loading fee, trucking,
    kind of fee after the board,
    such as: Lifting cargo fees,
    packaging, etc
    demurrage in POD, etc
    Obigation Seller Buyer

    Provide the notice to the


    Notice/others buyer when the cargo has
     Pay for the shipment when
    the cargo is laid on the boat
    been laid on board
    Advantage - Disadvantage
    of Seller, Buyer
    Advantages Disadvantages
    • Not be responsible for • Not be able to
    arranging the sea recover any loss
    transportation and marine once the goods
    insurance. have been on-
    The Seller • Recover the merchandise boarded.
    before the merchandise is • Need to make
    hauled on the vessel.  certain
    • Not held responsible for any arrangements for
    in-transit loss once the getting export
    goods are on board. permissions.
    Advantages Disadvantages

    • Get more control over the • Not be suitable


    logistics and shipping for new buyers
    costs.
    • FOB includes customs
    clearance.
    The
    • Cost-effective
    Buyer • Be able to choose the
    freight forwarder
    1.4. The difference between FOB 2010 and
    FOB 2020

    In INCOTERMS 2010 In INCOTERMS 2020


    Not used for goods transported by container
    Be revised by the ICC to become applicable to goods
    transported by containers
    02
    Comparison among
    FOB, FAS and FCA
    Similarity

    The buyer must bear the cost of the


    rental of the means of transport, the
    insurance of the goods and other costs
    incurred during the carriage as well as
    the associated risks.
    Difference
    FOB

    • The seller delivers the goods to the


    buyer on board the vessel, designated
    by the buyer, at the port of shipment in
    the country of export.

    • The risk of loss of or damage to the


    goods is in transit when the goods are
    on board and the buyer bears all costs
    from that point forward.
    FAS
    • The goods are placed alongside
    the vessel, designated by the
    buyer, at the port of shipment
    designated by the exporting
    country.

    • The risk of loss of or damage to


    the goods is when the goods are
    placed alongside the vessel and
    the buyer bears all costs from that
    point on
    FCA

    The seller delivers on the


    inland transport
    nominated by the buyer at
    the seller's premises and
    clears for export.
    Thanks for listening!
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