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Why should we prefer FOB? (FREE ON BOARD)

Updated: Nov 24, 2021

Freight cost is cheaper when FOB shipping.

As we understand that CNF means your shipper( supplier) will arrange transport to your port, and you pay the logistics cost. It is a more convenient way of international transportation, but you must realize that there’s a big chance that you are paying a lot more to get the goods than you should.

Why my supplier charges me more?

Three cases.

Some suppliers are just there to make additional profits.

Most suppliers quote you higher to save themselves from fluctuations in freight.

Most manufacturers in China are made-to-order. They need time to get the production done. They don’t be sure about what’s the shipping cost will be after 2 weeks or 1 month or much longer, when the goods are ready to delivery.

The total amount has to be settled down before that. So hundreds dollars added in reserve for future changes.

FOB means better control and work efficiently.

You have better control of your cargo and your budget. The cost is always important and you will have a better chance of gaining a more competitive freight rate.

Using your own forwarding agent will help you obtain more accurate information in a timely manner. They can assist you better once a problem arises. The logistic partner you choose always works together with you for YOUR best interest.

Contact now to get logistics solutions according to your exact needs Contact: 0305-2920000

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