Nashow Shipping Term

Date：2021/11/25 10:25:34

Shipping Term: FCA (Free Carrier)

Nashow takes the costs of trucking and custom clearance, clients take all the costs from their shipping agent and fumigation.

Ex-Work: it means we only load the container in our factory, after which we DO NOT undertake any costs including the Custom Clearance and Inland Trucking from our factory to the Port. If we undertake the costs of Inland Trucking from our factory to the Port and Custom Clearance, exactly speaking, we can not call it "EX-Work" anymore, it should be called FCA(Free Carrier), but most people do not know what FCA is, so we just call it EX-Work.

Under FCA Term:

Exporter Responsibility:

1. Exporter will undertak the cost of Inland Trucking from its factory to the Port.

2. Exporter will do the Custom Application on its side.

Importer Responsibility:

1. Importer will undertake its shipping agents' costs on both sides(exporter side & importer side).

2. Importer will undertake all the costs of frieght, insurance and all the other costs

FOB: It means we pay the Custom Clearance, Inland Trucking and the Counterpart of Your Shipping Agent. The Counterpart of Your Shipping Agent, means the branch or partner of your shipping agent on our side.

So now the only difference of what we offer is the cost of the Counterpart of your shipping agent on our side. You need to pay them by yourself.

Some clients do not understand Ex-work terms, they are only familiar with FOB, and they want us to do FOB, under which we will add additional charge per product. Actually, Ex-Work is better for you, because you can exactly get to know what your shipping agent will charge you from our side to your side, it is a whole chain. If we do FOB, you will not know how much they will charge us on our side, for the whole chain, the costs may be much higher than that of EX-Work. Under Ex-Work term, you'd better choose 3 shipping agents and compare their costs, ask each of them to give you list of cost, and you will quickly know which one you need to choose.

The other reason that we prefer Ex-Work instead of FOB, is that your shipping agent counterpart will charge us very high. Every time before we book shipment for you, we have to bargain with your shipping agent counterpart on the costs, sometimes it will take upto one week, which will greatly slow down our work efficiency, delay the shipment bookings, and more importantly affect the business relationship between us. Since 6 years ago, we decide to use the E-Work term only for all our new clients.

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