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What term is used when a shipment is owned by the seller up to the point of destination and the seller pays the transportation costs?
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∙ 12y ago
FOB
Wiki User
∙ 12y ago
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What is a Free on Board shipment?
Free on Board (FOB) shipment is a shipping term that indicates when the seller (in this case, Global Logistics Alliance) is responsible for the goods and their delivery. In an FOB shipment, the seller is responsible for the transportation and associated costs of the goods to a specified location, usually a port. Having a reliable logistics network is crucial for efficiently managing FOB shipments, ensuring timely delivery and cost-effectiveness.
Do you need to pay to post office if there is a shipment from eBay?
The seller is responsible for all shipping costs.
When the seller prepays the transportation costs and the terms of sale are fob shipping point where does the seller records the payment of the freight costs by debiting?
accounts receivable
What is the meaning of terminal handling charges in sea shipment?
Terminal handling charges (THC) are effectively charges collected by shipping lines to recover from the shippers the cost of paying the container terminals for the loading or unloading of the containers and other related costs borne by the shipping lines at the port of shipment or destination. For containers shipped on an FOB (Free-On-Board) terms, which specifies which party (buyer or seller) pays for which shipment and loading costs, and/or where responsibility for the goods is transferred. The shippers at the origin port of shipment are responsible for paying the THC at the port of loading. This is defined as the Origin THC. The consignees, or buyers of the cargo are responsible for paying the freight rate and the THC (or equivalent) on the discharge port of destination, known as the destination THC.
Meaning of incoterm cost and freight Dubai?
CFR Cost and freight (Port of destination)Incoterms ® 2010Cost and Freight means that the seller delivers when the goods pass the ship's rail in the port of shipment. The seller must pay the costs and freight necessary to bring the goods to the named port of destination BUT the risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time of delivery, are transferred from the seller to the buyer.The CFR term requires the seller to clear the goods for export.This term is used for conventional ocean freight or waterways only.Don't use this term for containerised freight!
What is the definition of FOB shipping point and FOB destination point?
FOB Destination means that the seller owns the goods until the buyer receives them. Therefore, the seller pays the shipping costs. FOB Shipping means that the buyer owns the goods once they are shipped. Therefore, the buyer pays the shipping costs.
If buyer pays the freight cost of delivering merchandise what is the delivery term?
Free On Board Destination (FOB Destination). This means that the seller pays the the freight costs from the shipping point to the buyer's final destination.
What is FOB pricing for Ethiopia?
Freight On Board. Usually the seller will designate whether it is F.O.B. at his store/plant or if it is F.O.B. your destination. This determines who is liable for the freight risks/costs. F.O.B. to your door is always better. It shifts the responsibilities/costs to the seller.
What is the difference between FOB destination and FOB shipping point?
FOB (Freight On Board) Destination and FOB Shipping specifies whether the buyer or seller owns the goods, and therefore, who pays for the shipping and includes the items in their inventory. FOB Destination means that the seller owns the goods until the buyer receives them. Therefore, the seller pays the shipping costs. FOB Shipping means that the buyer owns the goods once they are shipped. Therefore, the buyer pays the shipping costs.
What is the difference between CIF and CNF?
CNF is when the seller pays for all freight charges to destination port, after that the buy pays all costs for clearance customs duties and transportCIF is when the seller pays for all freight charges to the destination port, after that the buy pays all costs for clearance customs duties and transport, but it contain compulsory sea insurance.
What is the meaning prepaid shipment?
Prepaid shipment refers to a shipping arrangement where the shipper (usually the seller) pays for the shipping costs upfront. This means that the recipient (buyer) does not need to pay for shipping upon receiving the package. It simplifies the delivery process for the recipient and ensures that the shipment is paid for prior to dispatch.
What is the difference between incoterms ddp and dap?
DAT - Delivered at Terminal (named terminal at port or place of destination)Seller pays for carriage to the terminal, except for costs related to import clearance, and assumes all risks up to the point that the goods are unloaded at the terminal.DAP - Delivered at Place (named place of destination)Seller pays for carriage to the named place, except for costs related to import clearance, and assumes all risks prior to the point that the goods are ready for unloading by the buyer.DDP - Delivered Duty Paid (named place of destination)Seller is responsible for delivering the goods to the named place in the country of the buyer, and pays all costs in bringing the goods to the destination including import duties and taxes. This term places the maximum obligations on the seller and minimum obligations on the buyer.
