“FOB” is a term frequently encountered in international trade and stands for “Free on Board”. This term determines the obligations and responsibilities between the seller and the buyer of products produced in factory-determined sizes and appropriately palletized, such as basalt flooring, basalt covering, basalt steps, basalt cubestone, basalt sink and basalt disabled ramp.
Functioning of FOB in Basalt Products Export:
- Seller: Under FOB terms, the seller’s obligation is to load the basalt products onto the ship at the designated shipping port. All costs and risks such as receiving the products from the factory, transportation, storage, customs clearance and loading onto the ship belong to the seller.
- Buyer: When basalt products are loaded onto the ship, all risks and costs pass to the buyer. So, if any accident happens on the ship or the products are damaged, the buyer will be responsible.
Benefits and Risks of FOB:
- Benefits for Sellers: The biggest advantage for the seller is that he does not have any additional obligations after delivering the basalt products to the designated port. This ensures a clear limitation of costs and risks for the seller.
- Benefits for Buyers: Buyer has full control over choosing and paying the shipping company. This presents an opportunity to perhaps find a more affordable or faster shipping option.
- Risks: The biggest risk of FOB is the problems that may occur after the basalt products are loaded onto the ship. If a problem occurs before the products are loaded onto the ship, the responsibility belongs to the seller. However, if there is a problem after the products are loaded onto the ship, the buyer will be responsible.
The term FOB refers to a situation frequently encountered in the international trade of products such as basalt slabs, coverings, steps, cube stones and disabled ramps, that is, the moment when the products are loaded onto the ship. It has certain advantages and risks for both sellers and buyers. Therefore, when concluding an export agreement, it is very important that the parties fully understand this term and the obligations it brings. Additionally, there are many different Incoterms other than FOB, and each implies different obligations and responsibilities. Therefore, care should be taken when deciding which term to use.
Special Situations in the Export of Basalt Products for FOB (Free On Board) Delivery
In international trade of basalt products, FOB (Free On Board) delivery method is a common choice. However, the unique characteristics of basalt products and the specific requirements of the sectors in which they are used bring up some special situations when we associate them with FOB delivery.
- Special Packaging Requirements: Products such as basalt slabs, veneers or steps may be fragile. In FOB delivery, packaging, which is the responsibility of the seller before loading the products onto the ship, requires extra attention for such products. Special protective materials and palletizing methods may be used.
- Storage Conditions: Some basalt products may need to be stored under certain temperature and humidity conditions. The seller is obliged to provide these special storage conditions before loading these products onto the ship under FOB terms.
- Caution During Loading: Basalt products can be heavy. Therefore, special equipment or techniques may need to be used during installation. The vendor must accommodate such specific needs at the time of installation.
- Special Certification: Some countries may require special certifications or test reports for imports of basalt products. For FOB delivery, it will be the seller’s responsibility to prepare and present such documents to the buyer.
- Choosing Proper Shipping: Depending on the characteristics of basalt products, certain types of ships may be needed. (For example, special cargo ships may be required to transport heavy basalt blocks.)
- Insurance Important: In FOB delivery, all risk passes to the buyer when the products are loaded onto the ship. However, because basalt products are fragile and valuable, it is recommended that buyers comprehensively insure these products.
As a result, special situations encountered in the FOB (Free On Board) delivery of basalt products require extra attention and preparation for both the seller and the buyer. Reaching mutual agreements by both parties, taking these special situations into consideration, ensures that the commercial transaction goes smoothly.
