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Under the FOB terms for exports, who should appoint the freight forwarder?

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I'm a staff member of an export enterprise. Recently, I'm doing an export business under the FOB terms. I'm not clear about the appointment of the freight forwarder. I want to ask who, under the FOB terms for exports, appoints the agent, the seller or the buyer? Are there any industry practices or anything that needs special attention? Will inappropriate appointment bring any risks to us?

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Professional consultant answers

Robert Chen
Robert ChenYears of service:6Customer Rating:5.0

Customer service consultantConsult

Under the FOB terms for exports, usually the buyer appoints the freight forwarder. This is because FOB means free on board, and the buyer is responsible for arranging transportation, so has the right to appoint the freight forwarder.

From the perspective of industry practices, the buyer's appointment of the freight forwarder facilitates its control over the transportation process, ensuring that the goods are loaded onto the ship on time and shipped to the port of destination. However, the seller also needs to pay attention to the risks. If the freight forwarder appointed by the buyer is unprofessional or has a poor reputation, situations such as delivery of goods without a bill of lading may occur, resulting in the seller losing both money and goods. Therefore, although the seller cannot dominate the appointment of the freight forwarder, it can negotiate with the buyer and request to choose a reliable freight forwarder. At the same time, clarify the responsibilities of the freight forwarder in the contract, for example, require the freight forwarder not to release the goods without the seller's instructions, etc., to protect its own rights and interests.

William Yang
William YangYears of service:5Customer Rating:5.0

International logistics consultantConsult

Generally, it is the buyer who appoints the agent because under the FOB terms, the buyer assumes the transportation responsibility after the goods cross the ship's rail, and appointing the agent makes it more convenient for it to arrange transportation and subsequent matters.

Joseph Zhou
Joseph ZhouYears of service:10Customer Rating:5.0

Senior foreign trade managerConsult

Indeed, according to the practice, it is the buyer who appoints the freight forwarder, but the seller also has a certain say. If it is found that the freight forwarder appointed by the buyer may pose risks, the seller can propose a replacement to try to protect its own interests.

James Liu
James LiuYears of service:10Customer Rating:5.0

Foreign trade tax refund consultantConsult

For export FOB, most buyers appoint the agent, but the seller should pay attention to the relationship between the freight forwarder and the buyer. If the two have a close relationship, they may be biased towards the buyer in transportation, and the seller should be cautious.

Sarah Zhang
Sarah ZhangYears of service:8Customer Rating:5.0

Document expertConsult

Usually the buyer appoints, and the seller should properly control the ownership of the goods. If the freight forwarder is appointed by the buyer, the seller needs to confirm that the freight forwarder operates in a standardized manner to avoid damage to itself due to unexpected situations during transportation.

Emily Liu
Emily LiuYears of service:10Customer Rating:5.0

Settlement and payment expertConsult

Yes, it is common for the buyer to appoint the agent under the FOB terms. The seller should pay attention to the qualifications of the freight forwarder and can request to view relevant certificates to reduce transportation risks.

Jennifer Wang
Jennifer WangYears of service:4Customer Rating:5.0

Market development consultantConsult

Generally, the buyer appoints the freight forwarder, and the seller should follow up on the operation process of the freight forwarder. Once the goods are on board, the seller should promptly obtain transportation documents such as the bill of lading to prevent the freight forwarder from operating in violation of regulations.

Amanda Yang
Amanda YangYears of service:3Customer Rating:5.0

Cost control consultantConsult

Under the FOB terms, it is mostly the buyer who appoints the agent. But the seller can ask the buyer to provide the credit information of the freight forwarder, understand the situation of the freight forwarder in advance, and prevent potential risks.

David Li
David LiYears of service:6Customer Rating:5.0

Senior customs declaration consultantConsult

For export FOB, basically the buyer appoints the freight forwarder. After the seller ships the goods, it should keep in touch with the freight forwarder to ensure the smooth transportation of the goods and protect its own rights and interests at the same time.

Michelle Chen
Michelle ChenYears of service:3Customer Rating:5.0

Business coordination consultantConsult

According to the routine, it is the buyer who appoints. The seller should clarify the scope of responsibilities of the freight forwarder in the contract to avoid unnecessary disputes due to problems with the freight forwarder.

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