[Freight forwarding skills] FOB clause sellers must have cold knowledge (part 1) CNS Logistics

[Freight forwarding skills] FOB clause sellers must have cold knowledge (Part 1): 2018-06-04 11:09:00 According to statistics, 70% of China’s exports are traded in FOB, but experts point out: FOB risks to exporters Larger, it may result in the end of the goods and the payment. At present, the proportion of my country's export contracts that are traded on FOB price terms is increasing, and the number of consignees designating shipping companies is less and more than that of overseas freight forwarders. This does not conform to the meaning of FOB terms. What are the drawbacks of export contracts being traded on FOB price terms? Why is the proportion increasing? How do exporters respond? Why does export do FOB show an upward trend? In the 1980s, my country’s foreign trade implemented a national control policy. With the exception of a few foreign-funded enterprises, foreign trade management rights were limited to professional foreign trade companies at the central and provincial and municipal levels. It was not until the end of 1980s that it was expanded to municipal and county-level foreign trade. Companies and key production enterprises. At that time, my country's shipping market had not been opened to the outside world, and COSCO’s ocean-going mainline ships were far from being able to meet the needs of external transportation. A large number of exported goods had to be transited through Hong Kong. In order to protect the development of the national shipping and insurance industry, the state proposed to make CIF for export and FOB for import, which became the norm for foreign trade negotiations at that time. However, due to the many transit links along the way of exported goods, the information on the second voyage vessel provided to the buyer is often inaccurate, and even the name of the second voyage vessel is changed and changed again. The customer prevents us from pre-borrowing the bill of lading or backlogging the bill of lading. Some insist on doing FOB. Designated shipping company. Since my country opened its shipping market to the outside world in the 1990s, foreign liner companies have rushed to beach China's major coastal ports, especially Shanghai Port. The entry of foreign shipping companies provides conditions for foreign buyers to designate shipping companies. At the same time, with the vigorous development of foreign-funded enterprises and the state granting import and export management rights to manufacturing enterprises and scientific research institutes, my country is no longer a situation where professional foreign trade companies dominate the world, but a pattern of great economic and trade has been formed. In addition, international trade has also changed from a seller's market to a buyer's market. In addition to the traditional influence of state-owned enterprises in exporting CIF, other enterprises follow the market, so that the volume of export FOB has increased to a certain extent. As overseas shipping companies enter the Chinese shipping market, overseas freight forwarders are also flooding in. The activity of overseas freight forwarding has led to a sharp increase in the volume of my country’s exports as FOB designated agents. In addition, since 1997, liner companies have repeatedly increased prices. The price increases are frequent, the price increases are large, and the rapid price increase notifications are rare in history. Profitable freight expenses have become unprofitable and even reverse losses. Some foreign business personnel take the initiative to do FOB in order to avoid freight risk. Therefore, in recent years, the volume of exports as FOB has continued to rise rapidly. Some foreign-funded enterprises have almost reached more than 80%, and there is a rising trend.