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What are the common modes of transaction for international freight forwarders?

In the process of international trade, if we determine that the goods need to be exported, then we can refer the related matters of freight forwarding to the freight forwarding company. So in this process, it is extremely necessary for us to understand some common ways of transacting goods.

FOB FOB FOB FOB Price
Popular point is that foreign customers have designated freight forwarders, only need the shipper to arrange trailers and customs clearance at the port of departure. There are also EXW factory price directly in the factory delivery or customer designated place delivery trailer customs declaration is arranged by customers, customers pick up their own goods, factory delivery is OK.

2. CIF Cost plus Insurance and Freight
Popular point of understanding is that door to port (including port of departure Trailer + customs declaration + sea freight) is now generally said not to include insurance, customers require to buy insurance based on the value of the goods, can also use the term CIP is generally used only in maritime transport, CIP is applicable to various modes of transport, including multimodal transport, such as air transport.

3. DDU Dual Clearance Unpaid Delivery
DDP is the common understanding of delivery (including tax) after double-clearance, which is door-to-door. It is often said that double-clearance includes starting port Trailer + customs declaration + shipping + destination port customs clearance. Doing not need to deliver goods to door depends mainly on the needs of customers. It is important to note that DDP must provide the value of goods because tax payment should be based on the value of goods.

Therefore, when making inquiries to forwarders, it is better to first state FOB/CIF/DDU/DDP, etc. In case of FOB, we need to provide: goods name/container type/quantity/weight/loading address/port of departure/bill of lading document. Of course, it may also be bulk cargo, not to provide cabinet type only need to provide quantity: several parties.
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