After a week of negotiating at the Canton Fair or walking dozens of stalls in Yiwu, nine out of ten quotes you bring home say FOB. The number looks the cheapest — but FOB only runs until the goods are on board. Ocean freight, destination charges and customs clearance are all yours.
What does an FOB price include? One table
| The factory (seller) | Moves the goods to the port of shipment, clears export customs and loads them on the vessel the buyer names |
|---|---|
| The buyer | Booking and ocean freight, marine insurance, destination charges, import clearance and duties, delivery |
| When risk passes | From the moment the goods are on board, loss or damage is at the buyer's risk |
| Transport mode | Sea and inland waterway only (port to port) |
Source: ICC — Incoterms® 2020: FCA or FOB?. Your sales contract has the final word.
Why do Chinese factories almost always quote FOB?
Factories know the domestic leg: trucking, export customs, the port. How your country clears goods, how delivery works and what the destination port charges is outside their control, and they do not want to carry it. Quoting FOB cuts those costs out and makes the quote look better.
That is fine for the buyer — as long as someone takes over once the goods are on board. Without that, a "cheap" quote easily turns expensive at destination.
After the Canton Fair, which port will the goods ship from?
The Canton Fair is held every spring and autumn at Pazhou in Guangzhou, in three phases each season. Exhibitors come from all over China, so ordering in Guangzhou does not mean shipping from Guangzhou: the port written after "FOB" in your contract is where the goods go on board.
- Guangdong factories: commonly FOB Shenzhen (Yantian, Shekou) or FOB Guangzhou (Nansha, Huangpu)
- East China factories: usually FOB Ningbo or FOB Shanghai
- Fujian factories: commonly FOB Xiamen
Our advice: before you sign, ask the factory which port and which ready date — and put both in the contract. Different ports can mean very different sailings and freight.
Buying from dozens of stalls in Yiwu: how does FOB work?
Yiwu's small-commodities market means many product lines and small quantities per stall. Yiwu piloted the "market procurement trade" export mode in 2013, which received its own customs supervision code, 1039, in 2014; around 80% of Yiwu's export value now uses it (China News Service, June 2026). Yiwu goods mostly ship from Ningbo-Zhoushan port.
The hard part is not the freight — it is receiving: a dozen stalls, a dozen ready dates and a dozen packing lists need one receiving point that counts, checks and only loads the container when everything is in.
Our advice: do not have each stall deliver to the port on its own. Fix one consolidation point, count every delivery, and load once it is complete. If you want several suppliers' goods consolidated, split or labelled in Hong Kong, use Buyer Consolidation at our Tsuen Wan warehouse.
Who pays origin charges such as THC and documentation fees?
Under FOB, costs until the goods are on board belong to the seller. In practice, how terminal handling, documentation and seal fees at the origin port are split varies by port and by factory — it is the most common dispute on FOB orders.
Another situation the trade sees often: the factory quotes FOB but "kindly" introduces a forwarder it knows, with a very low ocean rate — and a long list of charges at destination. Where the freight is saved is often where it is charged back.
Our advice: write "all origin port charges for the seller's account" into the contract, or list them item by item. Before booking, ask the forwarder to list both origin and destination charges and check them against the factory once.
Full container or LCL? How should smaller buyers choose?
| Full container (FCL) | Enough cargo for a container, or high-value goods you do not want mixed. The factory loads the container directly, with less handling on the way |
|---|---|
| Less than container (LCL) | Small volumes, charged by volume and sharing a container with other shippers. Both ends need warehouse handling, so time and destination charges must be counted |
Our advice: do not compare ocean freight alone. When you are close to half a container, a full container including destination charges is sometimes cheaper — ask for both options and then decide.
FOB, FCA, EXW or CIF: when should you change the term?
| EXW Ex Works | Handover at the factory door; even export customs is the buyer's job. Our advice: avoid it if you do not know China's export procedures |
|---|---|
| FOB Free On Board | Handover once the goods are on board at the port of shipment; sea only. Our advice: the most common and easiest term for overseas buyers, for LCL or FCL |
| FCA Free Carrier | Handover to the buyer's carrier at a named place (such as the factory or the forwarder's warehouse). The ICC recommends FCA for containerised goods. Our advice: if the factory is inland or the goods go into a warehouse for consolidation first, FCA splits responsibility more clearly |
| CIF Cost, Insurance and Freight | The factory books the ship and insurance; risk still passes on loading. Our advice: it looks convenient, but the factory controls the shipping and destination charges are the easiest to lose control of |
How to choose an FOB forwarder — and which parts we handle
Forever Gain has worked in international freight forwarding for more than 20 years and holds NVOCC ocean booking qualification; our subsidiary in Xiamen holds a China international freight forwarding qualification. On the China side we work ports including Xiamen, Shenzhen, Shanghai, Ningbo and Qingdao, and overseas we cover South America, Australia and New Zealand, Southeast Asia, South Asia and Africa.
- Send us the factory address, FOB port, description, pieces, volume and weight, and the destination port
- We confirm the ready date and origin charges with the factory
- We book the space; for FCL we arrange trucking and loading at the factory, for LCL we arrange warehouse delivery
- The factory clears export customs; once the goods are on board, the bill of lading is issued
- We connect to the destination agent; clearance and delivery are confirmed per shipment
Destinations are confirmed per shipment. Customs requirements differ by country, so we will never just say "door to door anywhere".
What we will not do
- Under-declare or misdeclare descriptions or values for factories or buyers
- Promise "door to door, all inclusive" before checking destination clearance requirements
- Go around you to deal directly with your factory
This is our judgement, not regulation text: on an FOB order, the expensive part is not the ocean freight — it is nobody watching what happens after the goods are on board.
Not in China? Who watches quality and lead time?
FOB stops at the ship's rail; it says nothing about whether the goods are right. If you need someone in China to inspect and follow up production, see Buying FOB from China: why you need an inspection and follow-up agent.
Ordered at the Canton Fair or in Yiwu?
Send the factory address, FOB port, description, pieces, volume and weight, and destination. We agree the ready date and origin charges with the factory first, then quote the ocean options.
WhatsApp us the details WeChat Our Tsuen Wan warehouseFrequently asked questions
What does FOB mean?
FOB (Free On Board) is an Incoterms rule: the seller clears export customs and delivers once the goods are loaded on the vessel the buyer names; risk passes to the buyer at that moment, and ocean freight, insurance, destination charges and import clearance are the buyer's responsibility.
Does an FOB price include freight?
No. An FOB price only covers getting the goods on board at the port of shipment; ocean freight, insurance and destination charges are extra.
Do I have to find my own forwarder when buying FOB?
Not necessarily, but we recommend it. Under FOB, booking is the buyer's responsibility anyway, and nominating your own forwarder is how you see the real freight and destination charges.
Can I buy FOB in Yiwu?
Yes. Many Yiwu goods are exported under the market procurement trade mode, usually consolidated first and shipped via Ningbo or other ports; confirm ready dates and export clearance with each supplier before shipping.
What is the difference between FOB and FCA?
Under FOB, delivery happens when the goods are on board at the port of shipment, for sea and inland waterway only; under FCA, delivery is to the buyer's carrier at a named place, and the ICC recommends FCA for containerised goods.
Who pays origin port charges?
Under FOB, costs before loading belong to the seller, but practice varies by port, so the safest approach is to state in the contract who pays origin port charges.