Following is a list of shipping terms used when getting a quote from manufacturers or sourcing agents:
FOB (Free On Board): There are two types Origin and Destination. In FOB Origin or Shipping Point, the seller is at risk until the merchandise arrive to port and the buyer assume the rest of the risk while the product is transported. In FOB Destination, the seller is taking the risk until the product arrive to the buyer destination.
CIF (Cost, Insurance and Freight): The seller will take care of the shipping arrange, insurance and other costs related to transportation. The buyer will get the necessary documents to retrieve the product from the transporter. Good for the buyer that do not know or do not want to deal too much with logistics.
Cost and Freight (CFR): Similar to CIF, but this time the seller does not provide insurance. Insurance is necessary to protect your product while it’s being transported.
Ex Works (EXW): The buyer will have to arrange pickup of the product at the seller location. The seller only has to make sure that the products are ready to ship.There are other shipping and trade terms, but these are the most common terms to get a quote from your manufacturer.
Shipping forwarders are agent or intermediaries between the shipper (usually the seller) and the transportation company (UPS, Fedex, etc). In some occasions, shipping forwarders would also provide services in other areas such as completing custom documents, insurance, negotiate best shipping routes and costs, warehousing, and other logistic tasks.Use your favorite search engine or local directory to find a shipping forwarder in your area.Here are a few companies to get you an idea of the service they provide:
- https://www.freightos.com – Shipping marketplace.
- https://www.freightera.com – Shipping marketplace.
- Zencargo: Digital freight forwarder for air, sea, and road cargo.
- NEX Worldwide Express