May 12, 2019 - 06:44 PM
The prices you as seller want to offer to buyer is up to your discretion and the deal you make with the buyer.
When indicating "FOB port" means that the seller pays for the transportation of the goods to the port of shipment, additionally loading cost too. The buyer pays for all costs beyond that point, including unloading.
An FOB price means the price at which you are willing to sell the goods to the buyer, where you will be responsible for delivering the product to your nearest port and also loading it for onward shipment. Therefore, your FOB Price includes not only the price of the product you are selling but also transportation and loading charges at your nearest port.
An FBO price should always include a port name. E.g. A seller can sell his Soybean Meal at $285/Ton FOB Rotterdam. This will mean that the seller will charge $285/Ton to pack, transport and load his goods on to a container ship at the port of Rotterdam.
As an importer or exporter, you will come across various in co terms over and over; therefore, you can go through our guide to educate yourself about these terms.