ABSTRACT
This chapter examines Incoterms 2000 Free on Board (FOB) method and the obligations and responsibilities of the trading parties. Named port of shipment distinguishes FOB Incoterms from FOB as used in the USA as per its own Uniform Commercial Code (UCC). Ex Works (EXW) dealings are not really suitable for an intermediary in the majority of cases. Distant buyers prefer FOB or CIF most of the time. Free Carrier (FCA) are able to set up an expensive well-staffed office, intermediaries should keep away from buying and selling only Full Container Loads (FCL). Free Alongside Ship (FAS) is an excellent trading method for intermediaries. Intermediaries must learn to specify FOB Incoterms, named port of shipment as standard practice. Shipping and Bill of Lading (BOL) matters have nothing to do with a contract used by intermediaries, yet so many contracts on internet trading sites make inappropriate references to these matters.
