Which saves more for buyers, FOB or CIF?
Post 1 of 13
I would suppose that FOB saves more for buyers, because they can choose a desinated logistic agent to fulfill a transaction. Am I rite?
09 Mar 2007 00:34
Post 2 of 13
Replying to [GQTshanghai]:
It depends on buyers connections and possibilities !
rgds
Wilhelm
It depends on buyers connections and possibilities !
rgds
Wilhelm
09 Mar 2007 02:09
Post 3 of 13
Replying to [GQTshanghai]:
You are right.
You can quote the fob terms first.It is easy for you to calculate and quote.
If your customers ask the freight later, then you can check for them.
If they find your freight is cheaper than the freight they can get at their end, they will use your forwarders.
You are right.
You can quote the fob terms first.It is easy for you to calculate and quote.
If your customers ask the freight later, then you can check for them.
If they find your freight is cheaper than the freight they can get at their end, they will use your forwarders.
12 Mar 2007 05:45
Post 4 of 13
Replying to [wilhelm]:Seems this question is very extensive.I agree with Wilhelm,it should be depend on the detail information to choose.
12 Mar 2007 06:37
Post 5 of 13
Replying to [wilhelm]:yeah, it is a comprehensive question, you guys are all rite. need to find out later during my work
12 Mar 2007 23:27
Post 6 of 13
Replying to [GQTshanghai]:
CIF is always better than FOB and it is comparatively hassle free.
When we quote CIF price, we include cover for all expenses and after shipment, consignment is in your control until delivery to the destination port.
In case of FOB, you reduce the ocean freight cost only but you have to do all the paper work and bear all expenses till delivery on the vessel at the port of loading and in this case, not only the shipment is out of your control but you have nothing to claim in case of any accident during transit.
At the end of the day, if you calculate, CIF is cheaper and safe.![[em47]](http://img.alibaba.com/images/eng/style/icon/emoticons_ship.gif)
CIF is always better than FOB and it is comparatively hassle free.
When we quote CIF price, we include cover for all expenses and after shipment, consignment is in your control until delivery to the destination port.
In case of FOB, you reduce the ocean freight cost only but you have to do all the paper work and bear all expenses till delivery on the vessel at the port of loading and in this case, not only the shipment is out of your control but you have nothing to claim in case of any accident during transit.
At the end of the day, if you calculate, CIF is cheaper and safe.
13 Mar 2007 00:06
Post 7 of 13
Quoting from [GQTshanghai]:
I would suppose that FOB saves more for buyers, because they can choose a desinated logistic agent to fulfill a transaction. Am I rite?
In my opinion ,it depends on your trust in the seller.If u think that he works out the prices without any extras ,then CIF is ok.If u think that he adds too much to use CIF ,u can use Fob.I suggest u use FOB the first time to know the exact fees ,then u can decide or u can ask shipping company about their prices and then compare and decide.also it depends of the shipped product so if it were agricultural products that can spoil during shipping,I would prefer CIF except if I know the shippers well and I trust them completely .good luck
![[em1]](http://img.alibaba.com/images/eng/style/icon/emoticons_smile.gif){kind=icon}
13 Mar 2007 02:59
Post 8 of 13
Replying to [GQTshanghai]:
it is advisable for the buyer to buy on FOB. This is because of two reasons. Firstly, intangible service that is cargo insurance. It is cheaper to insure the cargo in the country of buyer rather than in the country of the seller even if it involves foreign currency. From the economic point of view, the cargo insurance insured in the country of the buyer will save the money from going outside another country.
Secondly, taking delivery and shipment of goods can also be arranged within the country of the buyer. The cost of the service is also cheaper.
On the other hand, CIF is advisable to be used when selling goods to another country. The two reasons above apply.
However, the buyer or the seller must be fully aware of their obligations and responsibilities regarding delivery and distribution of the risks.
it is advisable for the buyer to buy on FOB. This is because of two reasons. Firstly, intangible service that is cargo insurance. It is cheaper to insure the cargo in the country of buyer rather than in the country of the seller even if it involves foreign currency. From the economic point of view, the cargo insurance insured in the country of the buyer will save the money from going outside another country.
Secondly, taking delivery and shipment of goods can also be arranged within the country of the buyer. The cost of the service is also cheaper.
On the other hand, CIF is advisable to be used when selling goods to another country. The two reasons above apply.
However, the buyer or the seller must be fully aware of their obligations and responsibilities regarding delivery and distribution of the risks.
14 Mar 2007 02:03
Post 10 of 13
Replying to [GQTshanghai]:nearly same.just different process!
06 May 2007 19:42
Post 11 of 13
Replying to [GQTshanghai]:
From mylittle study of logisics i think the issue is who should manage the transportation process . Some times you may be confident in your supplier's reliability and his choice of carrier so CIF would be better for you in some other sitiuation you'll feel better to manage it yourself so FOB basis will be better in cases you have no chance for mistakes concerning timing.at last it depend on your supplier
From mylittle study of logisics i think the issue is who should manage the transportation process . Some times you may be confident in your supplier's reliability and his choice of carrier so CIF would be better for you in some other sitiuation you'll feel better to manage it yourself so FOB basis will be better in cases you have no chance for mistakes concerning timing.at last it depend on your supplier
07 May 2007 04:10