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News > FOB > Does FOB price include shipping costs? What fees ar
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Does FOB price include shipping costs? What fees are included in the FOB price?
Release time:2024-01-25

FOB is one of the commonly used trade terms in international trade, also known as "FOB price". Does FOB price include freight? Besides, what fees are included in the FOB price? Let's take a look together.
Firstly, regarding the question of whether FOB prices include shipping costs, it does include shipping costs. If there are more goods or higher profits, domestic expenses can be ignored. If the goods are relatively small, it is necessary to increase the price accordingly, because the unit cost has increased significantly. The unit cost mainly includes: inland freight (from the factory to the port or container warehouse), loading and unloading fees (especially for some goods that cannot be mechanically loaded and unloaded), LCL miscellaneous fees, header fees, customs clearance fees, inspection fees, etc.

The specific domestic expenses include:
1. Processing and organizing costs;
2. Packaging costs;
3. Storage costs (storage/rental, fire insurance, etc.);
4. Domestic transportation costs (from warehouse to port);
5. Document fees (including inspection fees, notarization fees, consular visa fees, certificate of origin fees, license fees, storage fees, etc.);
6. Loading fees (loading, lifting, and barge fees, etc.);
7. Bank fees (discount interest, handling fees, etc.);
8. Expected losses (wear and tear, short loss, leakage, damage, deterioration, etc.);
9. Postage and telecommunications fees (telegrams, telephone, electronic mail, fax, email, etc.).
The cost of FOB bulk cargo consolidation includes THC, yard, and generally an additional operation. If anything else happens with them, they will be charged, and if not, they will not be charged, such as customs clearance fees, electronic release fees, etc.
FOB price includes product production cost, enterprise profit, inland freight, packing fee, customs declaration fee, inspection fee, port or FOB price.

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