Incoterms : Case Study l Why you should be careful when you use FOB?

This video addresses the reason why it is not appropriate to use FOB in containerised shipment where, goods are handed over to the carrier at a terminal.

This is an animation video of a case study taken from the book A Banker's Insights on Incoterms Rules by Roy Becker.
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What is FOB?

FOB trade term means Free on Board

When is Delivery Completed under FOB ?
Seller is deemed to have delivered when the goods are loaded on board the ship nominated by the buyer at the named port of shipment.

What is the Seller's Obligation under FOB ?
Seller is required to clear goods for export, where applicable.

When does Buyer Risk and Obligation start under FOB?
Buyer has to bear all costs and risks of loss of or damage to goods from that moment onwards after the goods are loaded on board the ship at the named port of shipment.

This video is designed to provide those operating within International Trade : Exporters, Importers, Bankers & Insurers, Freightforwarders and Carriers an opportunity to broaden

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This video was produced by
1. Mr. Billy Fong Goon Poy, ACIB, MITD, Master Trainer
2. Ms Sook Ling, Online Content Creator

Tradelinks Resources conducts public training programs for the following International Trade courses in Malaysia
1. Incoterms 2010
2. Letters of Credit
3. Bills of Lading - Correct Preparation To Avoid Rejection by Banks