In cases where the importer uses his/her own consolidator in handling the delivery in an FOB sales term, the exporter may not worry about maximizing the use of a container capacity. For example, assuming that in the Case Sample: Container Selection (1) the importer orders 665 cartons of product DX at FOB price and will let his/her own consolidator, which is located in the importer's country and has an office in the exporter's country, handle the forwarding. The consolidator, knowing that the cargo is product DX but not knowing the total weight and cube of the proposed consignment, may quote the importer as follows:
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Quotation - Ocean Freight | |||
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FROM |
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TO |
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Importer's Warehouse | |
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WEIGHT |
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Per 1000 Kgs | |
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MEASURE |
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Per Cubic Meter | |
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COMMODITY |
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Product DX | |
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FREIGHT RATES |
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20' Std. Container | |||
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CY/CY |
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US$2,145 | |
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LCL |
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US$65 W/M | |
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Minimum |
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US$125 | |
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The Std. Container refers to the | ||
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The CY/CY is explained in | ||
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The LCL is explained in | ||
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The W/M is explained in | ||
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The Minimum is the minimum billing or | ||
The above quote includes the ocean freight and the inland freight and handling charge in the importing country. The brokerage fee and customs duty in the importing country are on the importer's account.
The cube of 665 cartons is 997.5 cu. ft. (i.e., 665 cartons x 1.5 cu. ft.) or 28.25 CBM. The total freight in the LCL (less container load) is US$1,836.25 (i.e., 28.25 CBM x US$65; please see the explanations in the Case Sample: Weight or Measure), while in a 20' container is US$2,145.
In such a case, the exporter does not have to worry about maximizing the use of a container capacity.