| Ocean Freight |
Seller/Manufacturer Product Cost - Product cost includes
seller's overhead, financing of receivable, and profit.
Bank - 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.
EX-FACTORY |
Air Freight |
| Packaging Cost |
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 |
| Reconsignment 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,
reconsignment 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, reconsignment 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 |
