In the performance of an import contract under FOB conditions, the buyer shall be responsible for sending a ship to the seller’s port to pick up the goods. If the contract stipulates that the seller shall notify the buyer of the expected shipment date within a certain period before delivery. After receiving the above notice, the buyer shall promptly go through the chartering and booking procedures with the transportation company. After completing the chartering and booking procedures, the buyer shall promptly notify the other party of the ship name and sailing date within the prescribed period so that the other party can prepare the goods for loading. At the same time, in order to prevent the ship and cargo from being out of sync and the situation of “ship waiting for goods”, pay attention to urging the other party to ship on time. For the import of large quantities or important materials, if necessary, you can also ask the overseas agency to understand on the spot, or arrange personnel to go to the export site for on-site supervision and inspection, and urge the other party to perform the contract.
After loading, the overseas seller shall promptly issue a shipping notice to the buyer so that the buyer can handle insurance and receive the goods in time.
Tips
Importers’ Notes on Chartering/Booking
Whether the importer should charter a ship or book a container depends on the nature and quantity of the imported goods. For goods that require full shipload, appropriate vessels shall be used for transportation; for small quantities or miscellaneous goods, liner space is usually used.
Things to note for importers when booking liner space and renting a full ship:
1. Liner booking
(1) When negotiating liner space, pay attention to the connection with the L/C loading date to ensure that the goods are picked up at the loading port on time.
(2) Before booking, check whether the liner rate table has any surcharges, discounts or rebates, and whether the pricing standard is size or weight tonnage.
(3) There are many conditions for liner shipping loading and unloading fees, and attention should be paid to the connection with the cost burden conditions in the import contract.
(4) It is necessary to know exactly whether the liner you book goes directly to the destination port, how many ports it stops at, whether it transships in the middle of the journey, etc.
2. Renting a full ship
(1) Understand the market conditions of the transportation market.
(2) Understand the conditions of the loading and unloading ports.
(3) Select the type of ship according to the actual situation to ensure the safe transportation of goods and save costs as much as possible.
(4) Understand the customs of each route port, the format of the transportation contract, etc.
The supplier is responsible for booking
For import contracts using CFR or CIF terms, the seller is generally responsible for the ocean freight (under CIF terms, the seller also needs to bear the insurance premium). The seller will choose the appropriate charter or booking method based on its own production progress.