Why Do Current Buyers Choose FOB Over CIF?
Why the shipping terms amid international trade business alter from CIF to FOB, DDU, DDP even EXW gradually in recent years? Here may come 3 explanations:
1. In the terms of the exporters, The instability of international fuel prices, currency prices of various countries, and the risk of war in the Gulf region has resulted in the ocean freight quotes of shipping companies following the market, which is not conducive to the seller's calculation of freight costs. so the seller is unwilling to proactively make price quotation on the basis of FOB.
2.The importers require FOB quote for the benefit of themselves to control the profit, if the unreliable china forwarders give reciprocate to the factory under the table, that will increase the shipping cost paid by the importers.
3. Some china forwarding companies offer a rate lower than the market at the port of loading but charge a high destination fee in the port of discharge, On the premise of CIF terms,the consignees will bear the risk of not receiving the cargo if they do not pay the expensive debit.The buyers choose FOB instead of CIF for the security of their goods and money.