• ImportNewbies

Pros and Cons using FOB shipping method

Updated: May 16, 2019


What is the pros and cons of using FOB shipping method you may wonder?


Other than being the most popular shipping method, FOB term can be good or bad, here’s a quick overview:

Pros:

Since seller handles everything at the origin, it basically means that you won’t have to worry about finding different vendors at the origin to take care of your cargo there. There are lots of steps involved in the process of getting your cargo to the port of origin, which includes export Customs, drayage, warehousing, documentation, etc… but you won’t have to worry about it if you choose to ship via FOB.


Cons:

Since you’re not dealing directly with each vendors at the origin, there is a chance that you’ll end up spending a little more on the local charges when you go through FOB. You can always try and look for your own origin agent who can handle all the origin procedures for you and it could probably save you some money – but this is not always the case.


Conclusion: I’d suggest you to do a comparison between seller vs. a local agent and think about whether or not the extra time you’ll have to put into arranging everything is worth the savings.


If you are in need of Customs Brokerage assistance, contact our main company, Elleo Global today!


Disclaimer: The information on this website is provided for informational purposes only and does not constitute legal advice. This information is intended, but not promised or guaranteed to be current, complete, or up-to-date and should in no way be taken as an indication of future results. You should not act or rely on any information contained in this website without first seeking the advice of a licensed agent!

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