Most reasons for choosing FOB delivery

There are many reasons for choosing FOB delivery, and this delivery term has some advantages in international trade, so it is adopted in many cases.

Here are some common reasons for choosing FOB delivery:

1. Fee sharing is clear: In FOB delivery terms, the seller is responsible for delivering the goods to the designated loading port, bearing loading charges and dock charges. The buyer needs to bear the costs of transportation, insurance, customs clearance, etc., from the port of loading to the destination. The cost-sharing is clear, which reduces the uncertainty of the two sides on the cost issue.
2. Risk transfer is clear: Under FOB delivery conditions, the ownership and risk of the goods pass to the buyer when the goods are loaded on the carrier. This clear transfer of risk helps both parties to clarify their respective responsibilities and reduces the likelihood of disputes.
3. Flexibility: FOB delivery terms can be adjusted according to different situations and the actual needs of international trade. The seller and the buyer may work out the appropriate loading port and loading method through consultation according to the specific requirements and conditions of the transaction.
4. Transportation option: The buyer can choose the right mode of transportation and transportation company according to his own needs and budget. This option helps the buyer to choose the most appropriate mode of transportation according to the situation and reduces transportation costs.
5. Customs clearance convenience: Under FOB delivery conditions, the seller needs to provide shipping documents, such as invoices, bills of lading, etc., to help the buyer complete the customs clearance procedures after the arrival of the goods at the destination.
6. Applicable to international trade: FOB delivery terms are usually used for sea or inland waterway transport and are suitable for cross-border trade between different countries and regions, so they are widely adopted in international trade.
7. Clear division of labor: Under FOB delivery conditions, the seller is responsible for delivering the goods to the designated loading port, and the buyer is responsible for transporting the goods from the loading port to the destination. This clear division of Labour helps to improve efficiency.

Although FOB delivery conditions have many advantages, in practical application, the selection of delivery conditions still needs to be considered comprehensively according to the specific circumstances of the transaction, the nature of the goods, and the interests of both parties.

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