How will EXW and FOB affect shipping cost ?

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Hello everyone.This is Robert from DAKA International Transport Company. Our business is international shipping service from China to Australia by sea and air.

Today we talk about the trade term. EXW and FOB are the most usual trade term when you import products from China to Australia. When your Chinese factory quoted you product price, you need to ask them if the price is under FOB or under EXW. For example, if a factory quoted you a sofa price which is 800USD you need to ask them if the 800USD is FOB price or EXW price. 

EXW is short for Exit Work. It means the Chinese factory will only provide the products. As a buyer you need to pick up the products from the Chinese factory and pay all shipping cost from door to door. 

FOB is short for Free On Board. It means the factory will provide the products and also they will ship the products to Chinese port and pay for Chinese customs and Chinese port charges. As a buyer you need to pay shipping cost from port to door instead of door to door. 

So when our customers ask us for shipping cost from China to Australia, we need to get to know what's their trade term FOB or EXW. if EXW, I will quote door to door. if FOB I will quote from port to door.

okay that's all for today. For more information please visit our website  Thank you


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