Guide to FOB Trade Terms and Risk Mitigation in Ocean Freight

Guide to FOB Trade Terms and Risk Mitigation in Ocean Freight

Under FOB (Free On Board) terms, the seller is responsible for costs up to the port of shipment, while the buyer bears the ocean freight and destination port charges. Pay close attention to the division of insurance responsibilities and the transfer of risk to avoid potential trade risks. Understanding these aspects of FOB is crucial for both parties involved in international transactions to ensure clarity and minimize disputes related to costs and liabilities during the shipping process.

09/26/2025 Logistics Encyclopedia
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Freight Payment Terms PP and CC Shape Global Trade Costs and Trust

Freight Payment Terms PP and CC Shape Global Trade Costs and Trust

Prepaid freight (PP) and collect freight (CC) are significant terms in the logistics industry. PP indicates that the shipper has paid the freight, while CC means payment is made upon receipt. Generally, collect freight is more expensive, and its payment method is closely linked to transaction terms. Understanding these concepts is essential for managing transportation costs effectively and gaining insights into international trade.

07/28/2025 Logistics Encyclopedia
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Amazons Pricing Strategy Drives Sales Growth

Amazons Pricing Strategy Drives Sales Growth

This article delves into the traffic and sales changes during the price increase phase of creating Amazon's spiral bestseller, breaking the myth of the 'traffic pool' and revealing the real reasons for declining sales. It provides coping strategies from a global perspective to help sellers achieve sales growth against the trend in a highly competitive market. The analysis focuses on understanding the impact of price adjustments on traffic and conversion, offering actionable insights for optimizing pricing strategies and maintaining sales momentum.

01/06/2026 Logistics Industry Insights
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Freight Pricing Explained Understanding Dimensional Weight

Freight Pricing Explained Understanding Dimensional Weight

This article explains the difference between bulky goods and heavy goods in a simple and accessible way. It details core concepts such as actual weight, volumetric weight, and billable weight, and analyzes calculation methods for air and sea freight using examples. Furthermore, it shares practical tips to avoid logistical pitfalls, helping you navigate logistics billing with ease. This guide provides insights into understanding and optimizing your international shipping costs.

12/30/2025 Logistics Encyclopedia
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Amazon Sellers Gain Relief As EU Eases Rules US Adjusts Fees

Amazon Sellers Gain Relief As EU Eases Rules US Adjusts Fees

Amazon faces a double benefit. European regulators are suing Amazon over 'unfair terms,' potentially forcing it to reduce restrictions on sellers. Simultaneously, the US Small and Light program's price threshold has increased from $8 to $10, boosting seller profit margins. Sellers should closely monitor these policy changes, optimize their pricing strategies, and improve product quality and service to capitalize on these opportunities. This presents a chance to enhance competitiveness and profitability within the Amazon marketplace.

12/30/2025 Logistics
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USPS Weighs Reverse Auction for Amazon Contract Renewal

USPS Weighs Reverse Auction for Amazon Contract Renewal

Amazon's existing contract with the United States Postal Service (USPS) expires in October 2026. USPS is considering using a reverse auction mechanism for renewal negotiations. This aims to secure more competitive pricing and service terms. However, it could also increase the complexity of negotiations and potentially impact the long-term partnership between the two entities. The reverse auction approach seeks to leverage competitive bidding to achieve favorable outcomes for USPS in the upcoming contract renewal.

01/07/2026 Logistics
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Air Freight Costs Drop for Volumetric Goods Amid New Strategies

Air Freight Costs Drop for Volumetric Goods Amid New Strategies

Struggling with high international air freight costs for volumetric cargo? This article delves into the definition and assessment criteria of volumetric cargo, explaining the logic behind dimensional weight pricing. It offers practical tips on maximizing space utilization, choosing the right shipping channels, controlling the volumetric ratio per box, and even negotiating discounts with logistics providers. Avoid common pitfalls and ensure your volumetric cargo isn't 'overweight' in terms of cost, leading to significant savings on logistics expenses.

11/03/2025 Logistics Encyclopedia
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Fedex Revises Pricing to Cut Pickup Costs

Fedex Revises Pricing to Cut Pickup Costs

FedEx launched a new package pickup pricing structure in August, applicable in the United States and Canada. Regular and automated pickup fees will be charged weekly, while each ad-hoc pickup will be billed based on the number of stops. This initiative aims to enhance transparency and flexibility, better meeting the needs of businesses and consumers.

07/02/2025 Logistics
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