What is FOB and the relationship between FOB and designated goods

FOB (Free On Board, Insert named port of shipment), also known as "FOB", is one of the commonly used trade terms in international trade. For transactions conducted on an FOB basis, the Buyer shall be responsible for sending a ship to pick up the goods. The Seller shall load the goods on the ship designated by the Buyer at the port of shipment and within the period specified in the Contract, and notify the Buyer in a timely manner. When the goods are loaded on board the designated vessel at the port of shipment, the risk is transferred from the seller to the buyer. In terms of sea transportation, it means that the freight will be paid on arrival.

Exporters who export on FOB terms always involve the problem of appointing freight forwarders. It was once said that the quantity of orders accounted for 90% of the market share. Although there is no exact data to verify, and this figure itself is not important, what is important is that more and more orders are placed. Basically, many customers now talk about FOB terms directly.

About Designated Goods and Designated Freight Forwarders

In terms of roles, suppose:

A. Exporter SHIPPER, Qingdao Chengxin Trading Co., Ltd

B. Designated freight forwarder, Qingdao Ocean International Freight Co., Ltd

C. CONSIGNEE, a foreign purchaser, Dansk Limited, Scotland

D. FOREWARDER Scotland International Freight Co., Ltd

At the beginning, A in China will contact and communicate with C, after confirming the order, C will place an order with A, and A will prepare to load and ship after completing the product, because C designated B in China to operate this order through D.

In fact, the freight forwarder really designated by the customer is D. It is Inter Scotland Freight Co., Ltd.

C will tell D that some ticket goods have been ready in China recently. Please arrange to transport them to Sydney and give him a quotation. Then D will find B and say that the invoiced goods have been ready. Please make an offer. B will make an offer to D, and then D will reply to C with a little profit based on B's offer. After C approves D's offer, the two parties will have a cooperation relationship. Then D will send B's contact information to C, and C will forward the relevant contact information to A;

At the same time, C will also send A's contact information to D, and D will also forward the relevant information to B. In this way, while C and D cooperate at the destination port, A and B also have a cooperative relationship through some kind of contact at the shipping port!