Gulf Coast Efficiency Driving International Trade

FOB shipping point and FOB destination indicate the point at which the title of goods transfers from the seller to the buyer. The distinction is important in specifying who is liable for goods lost or damaged during shipping. The primary difference between the two contracts is in the timing of the transfer of the title for the goods. These international contracts outline provisions including the time and place of delivery as well as the terms of payment agreed upon by the two parties. When the risk of loss shifts from the seller to the buyer and determining who foots the bill for freight and insurance, all depend on the nature of the contract. Baltimore’s biggest bridge collapsed early on Tuesday morning after a cargo ship crashed into one of its support beams, prompting Maryland Gov. Wes Moore to declare a state of emergency.

Moore said he « can confirm that the crew notified authorities of a power issue, » and he said that the decision to stop traffic onto the bridge « saved lives last night. » The Maryland Transportation Authority said all lanes were closed in both directions on I-695, which crosses the Key Bridge. Two survivors were pulled from the water soon after the collapse, officials said — one unhurt and one with serious injuries, who was treated at a hospital and later released, CBS Baltimore reported. “It’s too early to say what impact this incident will have on the auto business, but there will certainly be a disruption,” said John Bozzella, president of the Alliance for Automotive Innovation.

How to determine which FOB term to use

FOB shipping point and FOB destination are part of a larger set of International Commercial Terms (Incoterms) published by the International Chamber of Commerce (ICC). These terms are used to define the responsibilities and obligations of buyers and sellers in international trade, providing a standardized framework for global trade transactions. Understanding Incoterms, including FOB shipping point, is essential for businesses engaged in international trade. Another consideration is the risks and liabilities involved in the shipping process.

The bridge was one of the three major ways to cross the Patapsco River and formed part of Baltimore’s beltway. The lights of the ship flickered on and off as it lost power in the minutes before the ship changed bearing and hit the bridge. At least seven workers were pouring shipping point concrete to fix potholes on the roadway on the bridge directly above where the ship hit, said James Krutzfeldt, a foreman. In a statement, the company said that two port pilots were at the helm during Tuesday’s crash and that all 22 crew members onboard were accounted for.

Benefits of FOB Shipping Points

Sellers can enjoy control and flexibility over their precious cargo by designating their warehouse or shipping point as the FOB location. This way, they can ensure that their goods are correctly loaded onto the carrier, avoiding any damages or losses during the loading process. Sellers can choose their preferred carrier and route, giving them greater flexibility in the shipping process. Also known as “FOB Shipping Point,” this term means the buyer assumes both ownership and all freight costs right from the seller’s location or originating port. The term “shipping point” might seem straightforward, but when paired with FOB, it takes on a much more nuanced meaning.