Quick Answer: What Does FOB EXW Mean?

What is the difference between CIF and EXW?

CIF or CRF import freight terms are more expensive than Ex Works or FOB.

There will be a cost for arranging the shipping that the seller has to pass on.

When you use Ex Works or FOB, all or most of the shipping costs is paid for by you, and avoids any costs from the seller being involved..

Whats does FOB mean?

Free On BoardFOB DEFINITION | SHIPPING TERMS OF SALE. FOB, Free On Board, is a transportation term that indicates that the price for goods includes delivery at the Seller’s expense to a specified point and no further.

Is FOB and FCA the same?

The main difference between FCA and FOB is that FCA can be used for all modes of transport, but FOB is only appropriate for what is called conventional sea freight and should not be used when goods move by sea freight in a container. … Risk passes to the buyer once goods are loaded.

What is the best incoterm for seller?

Best Incoterms for sellersCFR-CIF: Cost and Freight – Cost, Insurance and Freight. The CFR Incoterm and the CIF Incoterm are generally good options for the seller as they’re competitive and do not involve too many risks. … DDP-DAP: Delivered Duty Paid – Delivered at Place. … FOB: Freight on Board.

What does FOB mean in Chinese?

free on boardThat price is the “FOB China” price. With that background, the idea of goods being “free on board” [a shipping vessel] should be easier to conceptualize.

What does EXW mean in shipping terms?

Ex worksEx works (EXW) is a shipping arrangement in which a seller makes a product available at a specific location, but the buyer has to pay the transport costs.

What is the difference between EXW and FCA?

In terms of delivery Ex-works, the seller delivers goods to the buyer at his (seller’s) premises. … In an FCA terms of delivery, normally seller’s assistance is required by the buyer to deliver goods at contracted place at buyer’s costs and risks.

Who pays freight on FCA terms?

Who pays transportation on FCA terms of delivery? Since the carrier is nominated by the buyer, the cost of transportation under FCA terms is paid by the buyer. The seller arranges to load the goods to the buyer’s nominated carrier.

What is FOB price?

Free On Board, in short FOB, is a term frequently used in shipping terms where the seller quotes a price including the cost of delivering goods to the nearest port. … FOB is a price that the buyer pays for the product excluding any of the following costs: Loading. Insurance. Freight.

What charges are included in fob?

Free on board is an international trade term under the Incoterms rules published by the International Chamber of Commerce (ICC).1 The costs associated with FOB include transportation of the goods to the port of shipment, loading the goods onto the shipping vessel, marine freight transport, insurance, and unloading and …

Which is better FOB or EXW?

With Ex works, the seller makes the product available at a designated location, and the buyer incurs transport costs. With Free on Board, the seller is responsible for the goods until they are loaded on a shipping vessel; at which point, all liability transfers to the buyer.