What is Freight, Freight and FOB?

May 24, 2018 | By admin4u | Filed in: Uncategorized.

About Accounting and Expression Import Export Terms; Even if you have a bookkeeper or accountant who will keep a good book, there are things and phrases you need to know. Before I start talking about phrases, I'd like to tell mt story. When my husband and I were just starting this business, we did not have any experience in this area at all. We did not even have any business, so every financial and non-financial condition was new to us. When we first went to talk to a private agent, I thought we were talking to another language. Even the freighter word was very strange to me: "Why would not you call this shipping?" Me too. So, I know the pain when it comes to business slang.

FOB destination

FOB destination – the article title comes from the seller to the buyer. This means that the seller is liable for the loss or damage of the goods until the shipment is delivered to the buyer. For example, he bought a car from Germany under FOB destination conditions. In this case, if anything happens to a car after it has been shipped, it has no responsibility and does not have to pay for damaging or losing the car. You do not even have to buy the car when it arrives if it is not in an acceptable state.

Carriage of Goods:

– Conditions for Carriage Costs or Shipping Costs when Vendor is responsible for Shipping (FOB Goal). [Seller'sshippingcostisfixedasfreightdeliveryortransportcost)

FOB delivery point:

FOB delivery point (FOB origin) – the goods are sold from a seller to a buyer in the seller's delivery document . This meant that the buyer had to pay for the shipment. Basically: If you purchased a car with a FOB delivery point or FOB, you are responsible for car delivery and damage. If the car is in poor condition because the accident occurred when the car was delivered, you will not be able to ask for money back.

  • Travel luggage paid in advance – Seller pays and makes all goods and. (Roughly the same as the FOB destination)
  • Delivery freight forwarded and recharged back – The seller pays the freight rates but returns them to the buyer's account. (For example, if you buy something from Amazon.com, the price of the shipment will usually be paid for the item, ie they will be paid for the item but will be returned.)
  • Destination Freight Collect – The buyer pays and takes all the goods. (However, the buyer will bear all the costs when the car arrives at the destination.)
  • Destination Freight Collect and Allowed – the buyer pays the freight charges but the seller takes the charges in billing. (For example, he bought a car that costs $ 5,000 and paid for $ 1,000 for a total of $ 6,000.) When the car arrives and receives an invoice from the company that sold the car, you see it only $ 4,000 (19659020) – Conditions for the fixing of transport costs or transport costs when the buyer is responsible for the consignment (FOB delivery) point, FOB origin) (Buyer charges this cost as freight or delivery charge.)

    Source by Yulia Rinaldi

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