A FOB price for tiles from India, such as FOB Mundra, means the seller delivers the goods on board the vessel at the named port and has cleared them for export. From that point the buyer carries the main freight, the insurance and the risk.
FOB is the most common term on Morbi tile quotes, but the details of what is inside the price vary by factory, so read the line items.
What does the seller cover under FOB?
Under the Incoterms rules published by the International Chamber of Commerce, FOB puts these duties on the seller:
- Packing the goods and marking them for export.
- Trucking the container from the factory to the port.
- Export customs clearance and the related documents.
- Port handling charges at origin, and loading the goods on the vessel, as the quote specifies.
What stays with the buyer?
The buyer arranges and pays for the ocean freight, marine insurance, and everything at destination: port charges, import clearance, duties, taxes and delivery to the warehouse. The buyer also bears the risk of loss or damage from the moment the goods are on board.
See FOB, CIF or DAP for how each term moves these costs, and insurance for tile shipments because FOB leaves insurance to you.
What is special about Mundra?
Mundra and Deendayal (Kandla) are the ports most Morbi exporters use, as set out in which ports Morbi exporters use. A FOB Mundra quote means the seller has trucked the container to Mundra and loaded it. The port you name matters, because it changes the trucking and the shipping lines available.
Ask the seller which charges are in the price and which are billed separately. Terminal handling and documentation fees are examples that factories sometimes list outside the FOB figure.
How do you avoid surprises?
Write the Incoterm with the port and the Incoterms edition on the contract, for example 'FOB Mundra, Incoterms 2020'. Ask for a list of included charges and confirm who arranges the container, the seals and the export documents. Know which documents your broker needs, see the document pack your customs broker will ask for.
Never compare a FOB quote with a CIF quote directly: they cover different costs.
What details should be in the contract?
Name the exact port and terminal, the date by which the goods will be at the port, and the cut-off for the vessel. If the container misses the vessel because the seller was late, the contract should say who bears the cost of the delay.
Agree who nominates the shipping line and the forwarder. Some buyers do, so they control the booking; others leave it to the seller. Either can work if it is clear, but confusion on this point causes late loading and extra storage charges.
Finally, keep copies of the export invoice, packing list and bill of lading together with the quote. If a charge appears later that you believe was part of the FOB price, these documents show what was agreed and what was invoiced.
Next step
We confirm what each quote includes and supervise loading so the container leaves as agreed. Book a free sourcing review to get quotes on a comparable basis.