In international logistics, “FOQ” is a common typographical error or misnomer for FOB (Free On Board). No official International Commercial Term (Incoterm) exists under the acronym “FOQ”.
“Navigating Port Logistics: A Guide to FOB Shipping Agreements” is a conceptual blueprint detailing how buyers and sellers manage risks, costs, and legal titles when transferring goods via maritime transit. Mastering these agreements allows companies to optimize their transit times, minimize extra port fees, and control operational costs. Core Dynamics of FOB Shipping Agreements
An FOB agreement explicitly defines the exact moment liability and financial obligations shift from the seller to the buyer. This ruleset applies strictly to sea and inland waterway transport.
Seller Responsibilities: The seller covers all costs to package, export-clear, and transport the cargo to the origin port. Their liability ends the exact second the goods are safely loaded on board the vessel.
Buyer Responsibilities: Once the cargo rests on the ship, the buyer assumes full ownership. The buyer pays for ocean freight, marine insurance, import customs, and final inland delivery. Strategic Framework: Shipping Point vs. Destination
Port logistics agreements branch into two distinct structural scenarios based on where the legal handoff occurs.
[ Seller Warehouse ] ──(Seller Risk)──> [ Origin Port / Vessel ] ──(Buyer Risk)──> [ Destination Port ] ▲ FOB SHIPPING POINT HANDOFF Scenario 1: FOB Shipping Point (FOB Origin) SEKO Logistics
FOB – What does it mean and when to use it? – SEKO Logistics
Leave a Reply