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Newbie Shipping Question
 
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    Newbie Shipping Question
    Hello all,

    I'm just learning the game here. I have a couple questions on shipping.

    Let's say that I my seller is in China. They quote me a price Free on Board. Now, does this mean that they already have chosen the shipping line, or can I use the shipping company of my choice? Also, is it unethical, as the buyer, to ask for the seller to ship CIF?

    Thanks for your help,

    Michael


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    Re: Newbie Shipping Question
    Hi Michael,

    of course you can instruct your seller to use your own shipping forwarder, such as Maersk, under any payment term, including FOB, CIF, etc. Such appointed shipping forwarder may bring your seller in China headache, because the service attitude is probably not so satisfactory.

    And of course you can require a CIF quotation. The seller may take the risk to bear the loss of shipping fee due to unstable cost of that, because it takes time to confirm everything before delivery, and in this period the shipping fee may fluctuate, normally only higher.

    regards

    william


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    Re: Newbie Shipping Question
    Thanks Himmel


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    Well, generally, if a seller quote a Free on Board(FOB) price, it means you have to choose shipping line by yourself. Free on Board means the seller only fulfils his obligation to deliver when the goods have passed over the ship's rail at the named port of shipment. Your appointed shipping line should have an agent in China who will arrange shipment for you and you pay the sea freight. But in that case, just as Himme said, the service in China probably not so satisfactory. When you have a CIF quotation, the seller will find a shipping forwarder. They will arrange shipment to the destination port and pay the sea freight. In international trading, these three price terms are widely used: FOB(free on board), CIF(cost insurance freight) and CFR(also called C&F that is cost freight).
    Hope this helps



    Cheers,
    M


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    Quote Originally Posted by M_Guan View Post
    Well, generally, if a seller quote a Free on Board(FOB) price, it means you have to choose shipping line by yourself. Free on Board means the seller only fulfils his obligation to deliver when the goods have passed over the ship's rail at the named port of shipment. Your appointed shipping line should have an agent in China who will arrange shipment for you and you pay the sea freight. But in that case, just as Himme said, the service in China probably not so satisfactory. When you have a CIF quotation, the seller will find a shipping forwarder. They will arrange shipment to the destination port and pay the sea freight. In international trading, these three price terms are widely used: FOB(free on board), CIF(cost insurance freight) and CFR(also called C&F that is cost freight).
    Hope this helps



    Cheers,
    M
    I don't have much experience in importing. So this post really helped me. Thanks for explaining some of the common terminology such as FOB, CIF and CFR.


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    We all came from being the newbie. We will learn along the way and that is just normal. - Phillip Elden


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