| Ocean Freight |
Seller/Manufacturer Product Cost - Product cost includes
seller's overhead, financing of receivable, and profit.
Bank expense includes fees and commissions assessed by the bank
for service including but not limited to assistance in collection,
transfer of money, or acting as an escrow agent.
|
Air Freight |
| Packaging Cost |
EX-FACTORY FOB SELLER'S PLANT - FOB Seller's Plant means only
free-on-board to the dock of the seller. Although this term has
common usage, it is mostly meaningless to the buyer who must now
oversee and pay for the entire aspect of shipment. |
Packaging Cost
|
| Inland Freight and/or Cartage Cost |
FOB PORT - FOB Port requires a geographic location, such as FOB
Port, Miami, Florida. FOB Port means that the price includes
product cost, packaging suitable for international transportation,
and the cost of inland transportation from the seller's dock to
the port of location. The goods have not been delivered to the
pier but only to a trucker's terminal or staging warehouse in the
port. |
Inland Freight and/or Cartage Cost |
| Re-consignment and/or Pier Delivery Cost |
FAS VESSEL - FAS Vessel means free alongside vessel and also
requires a geographic location. Included in this term are product
cost, cost of packaging for international shipment, inland freight
from the seller's dock to the port, re-consignment charges by the
inland carrier if bill of lading is not consigned to the ocean
carrier, and the cost of cartage from the trucker's terminal to
the pier. |
|
| Storage and/or Loading Cost |
FOB VESSEL - FOB Vessel, or Free-on-board Vessel includes
product cost, packaging cost, inland freight to the port,
re-consignment charges, pier delivery, terminal charges by the
ocean carrier and any loading changes. FOB Vessel will include
freight forwarder's fees and consular fees if applicable. |
|
| Ocean Freight, Surcharge, Port Congestion Cost,
etc. |
C&F PORT OF IMPORTATION - C&F stands for
cost and freight and requires the geographic location of the port
of importation, for example C&F Buenos Aires, Argentina. Cost
refers to cost of goods, and freight refers to all other costs
relating to all the means of transportation of the goods. |
Air Freight Cost |
| Insurance |
CIF PORT OF IMPORTATION - CIF stands for cost,
insurance, and freight and as always requires the port of
importation. Cost refers to cost of goods, insurance includes the
premiums to insure the goods during transportation, and once again
freight covers freight changes and all other charges incidental to
the transportation of the goods. Freight quotes are often quoted
high. The buyer, however, will pay only actual cost and should be
made aware of the extra margin built into the quote. |
Insurance |
| Unloading Cost |
EX SHIP |
|
Import Duty Cost
Import Brokers Fees |
EX DOCK |
Import Duty Cost
Import Broker Fees |
Cartage from Pier Cost
Inland Freight Cost
Warehousing Cost |
FOB BUYERS PLANT - FOB, Free-on-board, Buyer Plant
location means that all shipping expense, other than buyers bank
charges, is controlled by seller and is included in the price.
Often the buyer can control cost and efficiency from the port of
importation better than the seller, therefore lessening the use of
FOB Buyer's Plant. |
Inland Freight Cost
Warehousing Cost |
| Ocean Freight |
Buyer's Bank Charges - Buyer's bank charges include
payment to seller, fees, and commissions earned. Fees and
commissions may be paid by either buyer or seller by mutual
agreement. Banks will draft letters of credit and may totally
structure payment of the transaction. An example is the use of two
separate drafts, one for product cost, and one for transportation
expense.
Buyer Total Product Cost |
Air Freight |
