How to distinguish whether international sea freight is paid by the recipient or the sender?

2024-03-27 10:02

international sea freight

Payment upon delivery, also known as FOB price, means that you only need to pay for domestic expenses, and the remaining expenses are borne by the customer, usually by the designated shipping company. Prepaid, which means CNF or CIF price, you need to pay the full ocean freight and choose your own shipping company.

Normally, FOB is a collect payment, but there are also a few cases where the customer pays us after we have paid, which is a rare occurrence. The prepaid items are CNF, CIF, etc., and the shipping cost has already been included in these quotations, so we will arrange transportation ourselves and pay for the sea freight. But there are also a few customers who designate a freight forwarder for us to pay the shipping fee.

1. The contract is reflected in FOB price, which means that you only need to pay for domestic container towing, THC, and customs clearance fees (as well as special circumstances such as customs inspection). The sea or air freight costs are borne by the customer, usually by the customer's designated shipping company (or designated freight forwarder, less). The bill of lading shows freight collected as freight collect;

2. The contract is reflected in CNF (excluding insurance premium) or CIF (including insurance premium) prices, and you need to pay the full ocean freight and arrange your own shipping company (although there are also cases where customers specify a certain shipping company). The bill of lading is displayed as freight prepaid.


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