Freight Forwarders vs Shipping Agents

The main differences between freight forwarders and shipping agents are: Types of transportation—shipping agents will often specialize in one specific mode of transportation, while a freight forwarder can provide multimodal transportation options.

And while no two countries have exactly the same laws, when it comes to freight there are many precepts that are standardized worldwide.

This means that no matter where you ship from, you will encounter the same regulations. One of the most prominent examples of this standardization is the International Commercial Term, or incoterm.

Simply put, an incoterm is the standard contract used to define responsibility and liability for the shipment of goods. It plainly lays out how far along into the process the supplier will ensure that your goods are moved and at what point the buyer takes over the shipment process. It also has implications for your total freight costs.

FOB
Of the 11 different incoterms that are currently used in international freight, Free on Board (FOB) is the one that you will encounter most frequently.

FOB Shipping Meaning

First, let’s define what FOB (free on board) means by breaking it down word-by-word.

The term ‘free’ refers to the supplier’s obligation to deliver goods to a specific location, later to be transferred to a carrier.

In other words, the supplier is “free” of responsibility. ‘On board’ simply means that the goods are on the ship.

As such, FOB shipping means that the supplier retains ownership and responsibility for the goods until they are loaded ‘on board’ a shipping vessel. Once on the ship, all liability transfers to the buyer.

The FOB incoterm is only applied to shipments being sent by sea or waterway.

The further clarify, let’s track the FOB shipping process:
You purchase goods from a supplier in China and agree to FOB shipping terms. The next three steps of the process are carried out at the supplier’s expense.
Your goods are packaged and loaded onto a truck (or another form of transportation) at the supplier’s warehouse (or another facility).
The truck brings the goods to the port.
The goods are loaded on board the shipping vessel.
Once aboard, the rest of the journey from China is now both your liability and your expense. Anything that happens from this point is on you.

There are situations where you may be responsible for covering costs before your goods are on board.

When you are shipping loose cargo (ie, not a full container), for example, your goods must go through a Container Freight Station (CFS) to be consolidated into a container.

Some suppliers do not cover the cost of consolidation.

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What is the Difference Between FOB Shipping Point and FOB Destination?

The qualifiers of FOB shipping point and destination are sometimes used to reduce or extend the responsibility of the supplier in an FOB shipping agreement.

With FOB shipping point, ownership of goods is transferred to the buyer once they leave the supplier’s shipping point.

From there, the title for the goods transfers from the supplier to the buyer immediately and if anything happens to the goods at any leg of the journey to the buyer from there, the buyer assumes all responsibility.

With FOB destination, ownership of goods is transferred to the buyer at the buyer’s loading dock.

Upon delivery of the goods to the destination, the title for the goods transfers from the supplier to the buyer.

If anything happens to the goods on any leg of the journey to the buyer, the supplier assumes all responsibility.

FOB Shipping Point

When the terms are FOB shipping point, the supplier relinquishes all of his responsibility for the goods at his shipping point and the buyer is obligated to cover the freight costs required for getting them to the desired location.

To further clarify, let’s assume that Third moves ventures company in Nigeria purchases a container of The Wonder Comb from a supplier based in China.

An FOB shipping point agreement is signed and the container is handed off to the freight carrier at the shipping point.

If sending the container to Nigeria costs N500,000, Thirdmoves ventures Company is responsible for paying that sum in full in order to get the goods.

FOB Costs: What is the Difference Between FOB and other sea shipping incoterms?

There are four incoterms that are applied exclusively to ocean shipments: FOB, FAS, CFR, and CIF.

Understanding the differences between each is as simple as knowing how much responsibility the buyer and supplier assume under each agreement.

What is the Difference Between FOB and FAS?

Free Alongside Ship (FAS) is a barebones ocean freight shipping option. It requires the supplier to pay for the delivery of your goods up until the named port of shipment, but not for getting the goods aboard the ship.

The buyer takes responsibility for the shipment once it is placed alongside the shipping vessel.

Unlike FOB shipping, the supplier is not required to ensure the safe movement from port to ship.

What is the Difference Between FOB and CFR?

Cost and Freight (CFR) puts the costs associated with transporting your goods to the destination port on the supplier.

This includes any fees associated with export, in addition to the cost of sending your freight to the port of destination.

Once the delivery is unloaded in the receiving country, responsibility is transferred to you.

CFR includes neither insurance nor the costs associated with getting the delivery to your final destination. Also excluded are customs duties.

What is the Difference Between FOB and CIF?

Cost, Insurance, Freight (CIF) puts the liability of payment for – you guessed it – cost, insurance, and freight on the supplier.

This means that your shipment is in the proverbial hands of the supplier through the process of transporting them to a port and loading them aboard a ship. They also cover insurance costs.

The buyer still pays additional fees like customs clearance, however.

Depending on the agreement with your supplier, your goods may be considered delivered at any point between the port of destination and your final delivery address.

CIF is a more expensive contract option than FOB, as is demands more effort and expense on the part of the supplier.

Shipping timelines are always given by the shipping line when a booking is first made, but the reality is even if you managed to get the container loaded and moved into the port the same day, which is highly unlikely, there’s no guarantee that your cargo will still sail with the scheduled vessel.

Sales are the lifeblood of every business. Without it, you wouldn’t have cash flow, and without cash flow, you won’t achieve any form of growth or have enough funds to keep your organisation running.

While consistently making sales is key to growing a thriving organisation, the ease of finding clients in various industries differ. Join us to find out reasons you are not finding International buyers for your products.

The demand for Nigeria Agro commodities in International market are on the rise. Book a space and let's an expert help you navigate and resolve your great Export challenge.

It doesn't matter if you are a new comer testing International waters for the first time or an established exporter looking to grow your business abroad, your main challenge is always to find the right market and buyers for your goods and services you provide.

Honesty, selling in an unknown country is never easy. There are physical distance, cultural barriers to consider and language among other things. Luckily, we live in a time where technological advances have shrunk our world and brought us closer.

There are reputable trade sites serving as links between exporters and importers by carrying out trade matching services.

The platform allows you to search for buyers from 210 countries
Provides you with a facility to search for all buy requirements
Contact the buyers through your inquiry manager
Search by product and service
Dedicated team of professionals who constantly monitor all new buy requirements on the site
Paid subscription site

Commodity traders are expected to have a great understanding of how to successfully source and deliver the commodities they’re seeking trade finance for.
In some cases, commodity traders are expected to have 30% of the total commodity trade finance they need to execute the purchase and supply of the commodity.

What to say to prospects or existing clients could either improve or diminish your relationship with them. It could turn them into one of your best loyalists or into one of your company’s worst critics.
Treating and speaking to your clients the right way is key to building great relationships with them, and ultimately growing a successful business.

If you’re running a local or international business and want to ensure you never knowingly or unknowingly pushing your clients away with your words, Join us to learn here are 12 things to never say to a client or prospect.

CASHEW NUT

Quality/Standard:

Out-turn/Yield (KOR): 43 to 48 lbs per 80kg (good)

48 to 55 lbs per 80kg (excellent)

Nut count (number or raw cashew nuts per kg):

170 – Excellent
180-190 – Very Good
190-200 – Good
200-210 – Middle

Moisture: – 8% max

Foreign matter: – 2% max

Defective: – 5% max

Packaging:
The cashew nuts are packaged in jute bags or polypropylene sacks while the processed kernel are packed using vacuum packaging system with low density polyethylene film and corrugated fibre boards materials.

Uses:
The nut is processed to snacks, used in recipe
The shell is used in lubricants, paints, etc.

Importing Countries:
Major Importing countries are Vietnam and India. Other countries include:

Tanzania
Malaysia
Russia

Export potential of Cashew Nuts
The markets with greatest potential for Nigeria’s exports of Cashew nuts, in shell are “Viet Nam”, “India” and “Brazil”. Nigeria has closest export links with Bahrain. Viet Nam is the market with the highest demand potential for 080131 Cashew nuts, in shell.

EXPORT PLAN
After your market research, there is need to develop an export plan. How do you develop an Export plan? What is the benefit of having one? What are the key elements?

Export plan tips
Keep your plan simple and to the point
Always include your unique value proposition (this describes what differentiates you from your competitors)
Develop a feasible budget plan
Focus on your target market when defining your export plan
A good export plan guides you seamlessly through different export processes.
Ensure you incorporate relevant stakeholders (financial advisers, brokers and governmental bodies).

Exporting is lucrative because sometimes local prices are way lower than the export prices are. For example, If you want to start a direct export business in Nigeria, then you need to know very well, what kinds of goods are exported from Nigeria. With direct export business, product selection is very important.

The commodity trading market is a vast industry that has existed throughout history, as nations have always had a constant need to exchange goods and services in order to keep their economies growing. Commodities like oil & gas products, solid minerals & metals, and agricultural products are the basic commodities that drive the market. They’re traded all around the world with businesses in two countries acting as the key catalyst for the trades, while their governments provide the infrastructure needed to make it happen.

Join us in our Export training program to learn the commodity trading market and how best to go about it.

The future is Agriculture. We should be able to feed our nation and export to improve our economy.

What Are Physical Commodities?

Physical commodities are soft (agricultural products) and hard (minerals & metals) commodities such as minerals & metals like oil, copper, gold, silver, etc. and agricultural products like sesame seeds, ginger, soybeans, and much more. These commodities are usually shipped by sea to many countries around the world in large volumes & low prices under well-preserved conditions.

Physical commodities are grouped into two types:

1). Primary Commodities:
Primary commodities are natural goods that are produced/extracted directly from the natural resource point. Their quality varies greatly and they are solid minerals, metals, and agricultural products that are gotten directly from the mines, oil wells, and farms.

2). Secondary Commodities:
Secondary commodities are goods which are manufactured from primary commodities to cater to the needs of markets that need them. For instance, maize is used to produce animal feed, fruits are used to produce juice, crude oil is refined to produce diesel and other products, and much more scenarios. Just like primary commodities, the quality of the product can also vary depending on price, skill, and the production process.

Nigeria is among the top growers of agro commodities such as cashew, cocoa, sesame, sorghum, and ginger among others. It's regretably the country still exports about 90 percent of its agro commodities raw and is yet to develop a new strategy to promote the export of processed produces.

International trade can be richly rewarding. And the part of the financial spectrum you fall into depends on how much knowledge you have in the industry, how much information and experience you’ve garnered, and what type of decisions you make.

Sometimes, exporters make certain mistakes that can cause them problems. Join us and let's take you through the challenges Exporter face and sure ways through them, enabling you to earn more profit and reduce your risk to the barest minimum.

How An Exporter Can Secure Payment for Goods Shipped To International Buyers

International trade is one of the most scalable and profitable businesses in the world because commodity trading will forever be carried out between two businesses located in two different countries around the world at a certain price, procedure, quality requirement, and more, where once the first shipment is successful, the importer usually requests that the exporter continues shipping the same commodity to them monthly for a year, 3 years, 5 years, or even for life.

Join us in our Export Training Program to learn how best to secure payment for goods shipped to International buyers.

The Export business in Nigeria is one of the most lucrative businesses to venture into, depending on which sector you choose to focus on. While large-scale importation can have a negative impact on the country’s economy, large-scale exportation doesn’t just have a positive impact, but can turn any entrepreneur into a millionaire and possibly a billionaire.

Thousands of people intend to venture into the exportation of goods and services from Nigeria to many parts of the world. A strong advantage of this is it doesn’t just serve as a means of generating large revenues for their businesses, but is also a great way to get paid in foreign currency.

If you’re looking for profitable products and services to export from Nigeria to not just earn a lot of money, but to also get paid in dollars, here are 100+ profitable items, grouped by sectors, that you can export from Nigeria and make dollars:

Hot-Selling Non-Oil and Gas Products To Export From Nigeria
Solid Minerals
Gold
Coal
Iron Ore
Columbite Wolframite and Tantalite
Bitumen
Limestone
Etc

Join us in our Export training program to learn the 100+ profitable items, grouped by sectors, that you can export from Nigeria and earn good income.

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