Hey guys,

I have a customer from Canada now is asking to quote him FOB Vancover, he was kind of angry that I was not able to quote him the FOB Vancover price. But I'm currently in China, I mean how to quote a FOB Vancover price. He laughed and asked why can't you just ship to the port of Vancover? I'm confused what he wants now, maybe CIF? 

Just a question to experienced and new buyers, do you study the "Incoterm" before purchasing from overseas in the international business and the first time?

Or someone could explain to me the meaning on that?

Thank you for your comments!

 Dear ALL,

 INCOTERMS 2000

Origin Terms
EXW - Ex-Works, named place where shipment is available to the buyer, not loaded.

The seller will not contract for any transportation.
International Carriage NOT Paid by Seller
FCA - Free Carrier, unloaded at the seller's dock OR a named place where shipment is available to the international carrier or agent, not loaded.

This term can be used for any mode of transport.
FAS - Free Alongside Ship, named ocean port of shipment.

Ocean shipments that are NOT containerized.
FOB - Free On Board vessel, named ocean port of shipment.

This term is used for ocean shipments only where it is important that the goods pass the ship's rail.

International Carriage Paid by the Seller
CFR - Cost and Freight, Named ocean port of destination.

This term is used for ocean shipments that are not containerized.
CIF - Cost, Insurance and Freight, named ocean port of destination.

This term is used for ocean shipments that are not containerized.
CPT - Carriage Paid To, named place or port of destination.This term is used for air or ocean containerized and roll-on roll-off shipments.
CIP - Carriage and Insurance Paid To, named place or port of destination.

This term is used for air or ocean containerized and roll-on roll-off shipments.

Quoting from [Ranger]:

Replying to [faucet_maker]:  I to have read the responses from everyone.  However I believe that its inexperience on both sides. 

1. Buyer asked for quote that is not possible.
2. Seller says they can't.

Instead of saying you can't, the best response would have been what you could do.  Sometimes its better to educate the inexperience of a buyer than to close yourself off from a potential sale.   Anyone thats been doing this for a length of time knows that FOB means from the shipping port.  Which was your clue to the buyers inexperience. 

I would have simply sent him options you could do.  If this was merely a sample I would have quoted him CFR, CIF and DEQ.  I would have explained in the follow up email after making those quotes that the term FOB means shipment from the loading port and not the unloading port.

I think alot more deals could actually be done if buyers and sellers alike stop assuming that each other knows everything and that they work together to understand each of what the other is actually asking.

Best regards,

Ranger

 

 

Hi Ranger,

Thanks for your comments and you're correct. I learn things from you as always.

Cheers!

 

Quoting from [faucet_maker]:

Hey guys,

I have a customer from Canada now is asking to quote him FOB Vancover, he was kind of angry that I was not able to quote him the FOB Vancover price. But I'm currently in China, I mean how to quote a FOB Vancover price. He laughed and asked why can't you just ship to the port of Vancover? I'm confused what he wants now, maybe CIF? 

Just a question to experienced and new buyers, do you study the "Incoterm" before purchasing from overseas in the international business and the first time?

Or someone could explain to me the meaning on that?

Thank you for your comments!

Hot Topics Recommend

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How do I ship products into China? What products are in demand from India? Importing into the US or UK as a nonresident Negotiate after-sales services with supplier Free promotions on the forums! How can I persuade my supplier?

Quoting from [faucet_maker]:

Hey guys,

I have a customer from Canada now is asking to quote him FOB Vancover, he was kind of angry that I was not able to quote him the FOB Vancover price. But I'm currently in China, I mean how to quote a FOB Vancover price. He laughed and asked why can't you just ship to the port of Vancover? I'm confused what he wants now, maybe CIF? 

Just a question to experienced and new buyers, do you study the "Incoterm" before purchasing from overseas in the international business and the first time?

Or someone could explain to me the meaning on that?

Thank you for your comments!

Hot Topics Recommend

It's my Dream

How do I ship products into China? What products are in demand from India? Importing into the US or UK as a nonresident Negotiate after-sales services with supplier Free promotions on the forums! How can I persuade my supplier?

Freight-on-Board (FOB) cost structures involve the production cost plus any transport costs to the customers. This implies that customers located nearby will have a lower overall cost than customers that are further away.

or

F.O.B. to my understanding is freight on board. In other words, you pay for the material or you get paid for it as soon as it is put on the truck.

FOB is Free on Board and means that the charges become yours at the origination. The seller will load it on the truck and then it's yours.

Freight On Board is correct. Usually the seller will designate whether it is F.O.B. at his store/plant or if it is F.O.B. your destination. This determines who is liable for the freight risks/costs. F.O.B. to your door is always better. It shifts the responsibilities/costs to the seller.

Just a joke. Forgive someone's ignorance.

vancouver is a port name which is A city of southwest British Columbia, Canada, on the Strait of Georgia opposite Vancouver Island. The largest city in the province, it is a major port, commercial and industrial center, and railroad hub

we wanted you to send F.O.B till the port of VANCOUVER then we will pay the frieght there!

Quoting from [faucet_maker]:

Hey guys,

I have a customer from Canada now is asking to quote him FOB Vancover, he was kind of angry that I was not able to quote him the FOB Vancover price. But I'm currently in China, I mean how to quote a FOB Vancover price. He laughed and asked why can't you just ship to the port of Vancover? I'm confused what he wants now, maybe CIF? 

Just a question to experienced and new buyers, do you study the "Incoterm" before purchasing from overseas in the international business and the first time?

Or someone could explain to me the meaning on that?

Thank you for your comments!

 maybe he is seldom to make big order export from foreign country and don't understand what FOB means. Asking him to search FOB and learn about it.

Quoting from [faucet_maker]:


What he is asking you is to quote a price delivered to him in Vancouver, cost of product plus shipping costs, import fees into that port, you need to work with a freight forwarder or shipping company to get these costs, many good ones in China and in Canada, Aramex in Canada is a good one, call/contact Ruth Bauge at  ruth.bauge@aramex.com

Hey guys,

I have a customer from Canada now is asking to quote him FOB Vancover, he was kind of angry that I was not able to quote him the FOB Vancover price. But I'm currently in China, I mean how to quote a FOB Vancover price. He laughed and asked why can't you just ship to the port of Vancover? I'm confused what he wants now, maybe CIF? 

Just a question to experienced and new buyers, do you study the "Incoterm" before purchasing from overseas in the international business and the first time?

Or someone could explain to me the meaning on that?

Thank you for your comments!

Hot Topics Recommend

It's my Dream

How do I ship products into China? What products are in demand from India? Importing into the US or UK as a nonresident Negotiate after-sales services with supplier Free promotions on the forums! How can I persuade my supplier?