If you use CIP (Carriage And Insurance Paid To) or CIF (Cost, Insurance, and Freight), it is essential to check that the amount of insurance placed on the products by the vendor is correct.
The seller should insure a minimum of 110% of the contract value; in case a commercial contract demands a higher level of insurance, it should be met.
Miscommunication
Be open and transparent in your communication about the freight charges and other slovenia phone number list related fees. Any misunderstandings regarding payment, address, name or any other policy can lead to delays in shipments.
It is best to outline who is handling what charges in your contract to avert any complications, delays, and unforeseen costs. Therefore, you should always maintain clear communication with the other party regarding all the terms.
Below mentioned are some of the misunderstandings various people have about FOB shipping:
FOB covers all costs
One of the most common misunderstandings about FOB is that it covers all risks and responsibilities associated with shipping. However, this is not the case. FOB makes the buyers responsible for the costs and risks associated with the goods once they are loaded onto the ship/truck/aircraft. This agreement relieves the seller from any obligations once the items have passed the ship’s rail. This implies that only the buyer takes accountability after that.