Under the export FOB (Free on Board) trade term, theoretically, all costs before the goods cross the ship's rail at the port of shipment (now the Incoterms has been changed to when the goods are loaded on board), including the transportation costs to the wharf of the port of shipment, loading costs, etc., are borne by the seller; while the freight, insurance premiums, etc. after the goods are loaded on board are borne by the buyer.
However, in actual business, the situation of bearing the freight and miscellaneous charges also depends on the specific contract provisions. If the contract clearly stipulates that certain freight and miscellaneous charges are to be borne by the buyer, even under the FOB term, the buyer should pay according to the contract.
In addition, the cooperation agreement with the agency is also crucial. If the agency fee includes part of the freight and miscellaneous charges and the agreement stipulates that the seller should pay the agency fee, then this part of the freight and miscellaneous charges will be borne by the seller. In short, it is necessary to comprehensively consider the trade contract and the agency agreement to determine the bearing party of the freight and miscellaneous charges.
Professional consultant answers
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
Under the export FOB (Free on Board) trade term, theoretically, all costs before the goods cross the ship's rail at the port of shipment (now the Incoterms has been changed to when the goods are loaded on board), including the transportation costs to the wharf of the port of shipment, loading costs, etc., are borne by the seller; while the freight, insurance premiums, etc. after the goods are loaded on board are borne by the buyer.
However, in actual business, the situation of bearing the freight and miscellaneous charges also depends on the specific contract provisions. If the contract clearly stipulates that certain freight and miscellaneous charges are to be borne by the buyer, even under the FOB term, the buyer should pay according to the contract.
In addition, the cooperation agreement with the agency is also crucial. If the agency fee includes part of the freight and miscellaneous charges and the agreement stipulates that the seller should pay the agency fee, then this part of the freight and miscellaneous charges will be borne by the seller. In short, it is necessary to comprehensively consider the trade contract and the agency agreement to determine the bearing party of the freight and miscellaneous charges.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
Generally, under the FOB term, the seller is responsible for the costs before the goods are transported to the designated ship at the port of shipment, such as inland transportation fees, loading fees, etc., which are borne by the seller, and the costs after are borne by the buyer. However, if the buyer designates a freight forwarder and the freight forwarder invents various pretexts to overcharge, the buyer and the seller may argue about the freight and miscellaneous charges, so it is very important to write it clearly in the contract.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
I think it mainly depends on the negotiation between the two parties. Sometimes, for the sake of convenience, the buyer may ask the seller to help arrange transportation-related matters, and then this part of the freight and miscellaneous charges may be borne by the seller, but the corresponding price will also be adjusted into the price of the goods. In fact, it is equivalent to the buyer bearing it indirectly.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
If there is no special stipulation in the contract, according to the FOB rules, the seller is responsible for the freight and miscellaneous charges before the goods are loaded on board, such as packaging fees, short-distance transportation fees, etc. The ocean freight after the goods are loaded on board is borne by the buyer. If there are special requirements, such as urgent transportation, the additional costs should be discussed by the two parties to see who will bear them.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
Under the FOB trade term, usually the seller bears the freight and miscellaneous charges before the goods are loaded on board, and the buyer bears them after the goods are loaded on board. However, in actual agency operations, if the agency operates according to the buyer's requirements, some costs may need to be borne by the buyer, so it is necessary to clarify the responsibilities in advance.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
Generally, the seller should bear the freight and miscellaneous charges before the goods are loaded on board at the port of shipment, such as the costs of transporting the goods to the port warehouse. And the buyer bears the transportation costs starting from when the goods are loaded on board, depending on whether there are other stipulations in the contract.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
Under the FOB trade method, in principle, the seller bears the freight and miscellaneous charges before the goods are loaded on board, such as the lifting fees at the port. If the buyer designates a freight forwarder and the division of freight forwarder fees is not clear, it is easy to have problems. It is best to clearly write down the details of the freight and miscellaneous charges and the bearing party in the contract.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
According to the regulations, the seller is responsible for the freight and miscellaneous charges before the goods are loaded on board, and the buyer is responsible for those after. However, in agency export, the agency may have different charging standards. It is necessary to confirm clearly with the agency who will bear each cost.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
In export FOB agency, normally the seller bears the freight and miscellaneous charges before the goods are transported to the ship at the port of shipment. If the buyer requests special services and incurs additional freight and miscellaneous charges, the two parties need to discuss and determine the bearing party.