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This mistake often gets committed as companies involved in international transactions tend to ignore the other terms of the incoterm. However, this confusing habit is not at all supported and you must know the correct significance of the Fob term.Initially, FOB was associated shoes ardene with the selling of goods in bulk amounts. Decades ago, there were no containers available for shipping the goods and thus people used any ship for carrying the load. However, with time, containers came into the picture and now loads are carried in them for transportation. Even today, several companies use shoes lace the FOB term for containers without understanding the revisions that have been made by ICC in the scope.
It is crucial that companies go through the amendments made at an interval of ten years in the terms related to international transactions. This would facilitate better logistics management and control in the long run.?Knowing The Appropriate Incoterm For The Use Of Containers:Rather than misusing the term FOB in case of containers, companies must know which is the actual term related to them. Containers fall in the other part of the modes of transportation which are non-maritime. Whereas, as stated earlier in the shoes ecco canada discussion, FOB is exclusive related to the maritime transport.
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