Is Ex Works and FOB the same?
EXW stands for Ex Works, an incoterm whereby the buyer of a shipped product pays for the goods when they are delivered to a specified location. FOB, or Free on Board, instead shifts the responsibility of the goods to the buyer as soon as they are loaded onboard the ship.
What is the difference between FOB and DAP?
FOB destination point, or FOB destination freight prepaid (DAP in Incoterms): The shipper pays the freight cost, and maintains ownership while goods are in transit. FOB destination point, freight collect: The buyer pays freight shipping fees upon delivery. The shipper assumes liability and ownership during transit.
What does FOB mean in lumber?
In essence, the seller would put the lumber on the rail car or ship for free, so to speak, or “free on board.” Hence, the abbreviation of F.O.B. It does in fact mean “Free On Board” and not “freight…” The term can be expressed as f.o.b. or F.O.B.
Whats does FOB mean?
Free on Board
Free on Board (FOB) is a term used to indicate who is liable for goods damaged or destroyed during shipping. “FOB origin” means the buyer is at risk once the seller ships the product. “FOB destination” means the seller retains the risk of loss until the goods reach the buyer.
What does Ex Works stand for?
Ex works (EXW) is an international trade term that describes when a seller makes a product available at a designated location, and the buyer of the product must cover the transport costs.
Who pays freight on Ex Works?
the buyer
In an EXW shipment, the buyer is responsible for all transportation charges and must collect the goods from the seller. In a FOB shipment, the seller is responsible for exporting and paying the costs to load the cargo onto the vessel.
Which is better DDP or FOB?
By known FOB price, buyer should choose the term DDP if the distributor gave DDP price only 10% above its FOB price. However, if the distributor gives significant price difference with DDP price 40% higher than the FOB price, it is better for buyers to direct their own forwarder services by choosing FOB term.
Should I buy FOB?
The advantage of buying FOB is that the buyer can get better deals on freight services, unlike in CIF where the buyer has to rely on the freight services chosen by the seller. This is because the seller might be looking to make profit from the freight services. The buyer therefore makes profit from buying FOB.
What is difference between CIF and FOB?
The abbreviation CIF stands for “cost, insurance and freight,” and FOB means “free on board.” These are terms are used in international trade in relation to shipping, where goods have to be delivered from one destination to another through maritime shipping.