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A Comprehensive Analysis of FOB Bulk Cargo Prices: The Relationship between Calculation Methods and LCL Surcharges
Category: Shipping SolutionsDate: August 11, 2024, 12:48Source: Import and Export Agency of Zhongshen International Trade
Home»Shipping Solutions»A Comprehensive Analysis of FOB Bulk Cargo Prices: The Relationship between Calculation Methods and LCL Surcharges
The FOB (Free On Board) bulk cargo price is a very important international trade term, which designates the point at which the price of goods and the transfer of delivery liability occur in international trade. Here, we will discuss in detail the calculation method of the FOB bulk cargo price and its relationship with the LCL (Less than Container Load) surcharge.
FOB散貨價格概念
The FOB price means that the seller delivers the goods on board the ship at the designated port, at which point the ownership and risk of the goods are transferred to the buyer. The FOB price usually includes the following costs:
Ex-factory price:This is the cost of the goods themselves, usually including production costs and the sellers profit. Domestic transportation costs:The transportation costs from the production site to the export port. Export-related costs:This may include export customs clearance fees, handling fees, etc.
FOB價格計(jì)算方法
To calculate the FOB unit price, first, the total FOB cost needs to be determined, and then these costs are allocated according to the total quantity of exports. The calculation formula is as follows:
Under the FOB terms, usually, the seller is only responsible for delivering the goods on board, excludingMaritime Transportationfees and destination costs. If LCL (less than container load) is used, an LCL surcharge may be involved. This is because LCL requires more logistics handling, such as consolidation and deconsolidation, and the corresponding costs are higher.
(1) If the FOB price includes all costs up to the ship (including the handling fees for LCL), then the fees paid by the buyer at the destination are limited to the costs from the destination port to the final destination. (2) If the FOB price does not include the LCL surcharge, then this part of the cost shall be borne by the buyer and settled directly with the logistics service provider after the goods arrive at the destination.
When quoting and settling the FOB price, it is important to clearly indicate which costs are included. Both the seller and the buyer should accurately understand the content of the terms to avoid misunderstandings and additional costs during the goods delivery process. Regarding whether to include the LCL surcharge, this should be determined according to the specific transaction agreement and the mutual agreement of both parties. Usually, clarifying these details can help both parties avoid confusion in subsequent logistics and financial processing.