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FOB vs FCA: The Incoterm Trap Costing Importers
Episode 4204
Published 1 month ago
Description
Most importers default to FOB or CIF because "that's how it's always been done." But these Incoterms were designed for break-bulk shipping in 1936 — not containerized cargo. This episode unpacks eight shared-responsibility Incoterms (FCA, FOB, CIF, CFR, CPT, CIP, FAS, DPU) and reveals which are quietly costing buyers thousands. Why Chinese suppliers love FOB even though risk transfers at a fictional "ship's rail." Why CIF insurance covers only 60-70% of container losses. And why CIP with ICC-A coverage is often the smarter choice for multimodal shipments. If you source from China, this is the episode that might save your next container.