FOB vs FCA and how the Hanjin bankruptcy can still screw you

© Youssouf Cader

A very interesting blog from the director of global supply chain at Hampton Products. It explains Free on Board and Free to Carrier – and why both exporters and importers should use the latter to ensure there is clarity over risk and fees in the result of a supply chain disruption – such as Hanjin’s bankruptcy.  Both the shipper and the buyer need to understand the concepts involved and make sure they are subsumed into supply chains to ensure there is no confusion. Worth a read for cargo owners in particular – and very relevant at the moment.