Clients often ask us what their incoterm options are when it comes to shipping by sea. Our typical answer is "most buyers go for FOB, so that's probably what you want to do". But that's a bit short. Let's look in more detail at how to select the right option for our needs from all the Incoterms 2020 list. … [Read more...]
Sourcing from China 101, Part 5: Negotiating With Chinese Suppliers: The Terms you Need to Discuss
Chinese suppliers are good at detecting which purchaser is inexperienced. If that's the case, and if you are dealing with dishonest suppliers, they could think that they will be able to take advantage of you. Therefore, it is important that you come across as someone who is fully prepared. You need to know what to ask, and how to respond when a supplier is being unreasonable. Let’s have a look at the main terms you will need to discuss when negotiating with Chinese suppliers who you are … [Read more...]
Shipping under FOB vs CIF terms?
Regarding FOB vs CIF incoterms, I found an interesting article in the latest edition of the ChaINA magazine (published by the Global Supply Chain Council). It warns importers against accepting CIF (Cost-Insurance-Freight) shipping terms rather than the more conventional FOB (Freight On Board) terms. There are two reasons for that. First, importers often end up paying the freight twice (once to their supplier, and then again in abnormal port & terminal charges): International freight … [Read more...]