Instructions
Minicase:
You are a Vietnamese exporter of coffee beans to the EU by sea container transportation and the European partner desires to have goods preparing for the Christmas holiday. Which option of Incoterms rules (Incoterm 2020) do you prefer for the delivery in October, 2021. Estimate the transportation costs and risks based on the FBX: https://fbx.freightos.com/freight-index/FBX.
Answer
- Product: Coffee Beans
- The exporter (The Seller): Vietnamese
- The importer (The Buyer): EU
- Delivery time: October 2021
- Purpose: Preparing for the Christmas Holiday
- Questions
Attachment
https://www.pjico.com.vn/wp-content/uploads/2018/04/PL-26.1-01-Biểu-phí-bảo-hiểm-hàng-hóa-2017.pdf
I. INTRODUCTION
- Export of goods is usually contracted by one of two delivery methods: FOB price (price at the border gate of the seller's country, including all costs of transporting the shipment to the port, export tax and customs clearance tax). customs procedures) or CIF price (price at the buyer's border gate, including freight, insurance, and freight).
- Before the Covid-19 pandemic, agro-forestry-fishery export enterprises mainly exported their products by FOB (Free on Board)
- But since Covid-19 happened globally, shipping rates have increased, most of Vietnam's purchasing partners in EU have requested to switch to delivery at the port of the importing country (CIF - Cost Insurance and Freight), making agricultural products exporters very Vulnerable
II. CURRENT SITUATION
- Under the situation of rising shipping rates, both buyer and seller do not want to pay the transportation cost in contracts for sale of coffee