At this time of world economic meltdown, movement of cargo from one location to another
has been greatly hampered by the need to pre-pay freight for goods carriage.
Stringent terms normally issued by Banks and other financial institutions when financing import trade, has forced many businesses to slow down due to high cost of maintaining credit facilities.
Many import companies and individuals tend to delay their import programs while trying to raise sufficient funds to finance importation programs.
Lack of sufficient information on shipping arrangements available to importers and shippers, cargo are normally delayed until some conditions associated to handling of the shipments are resolved.
The most effective shipping term when in financial difficulty is to use free on Board terms to ship goods. This is free-shipping where cargo shipped will be paid for only on arrival at their destination.
For importers seeking to buy merchandises from overseas with a limited budget to finance transportation can always opt to purchase such items on FOB basis where freight will be collected after items are delivered at their nearest port.
Free-shipping is essentially important as it gives the buyer of such commodities humble time freehand to negotiate for freight with their local shipping agent for better rates of transportation.
It is important to note also that not all shippers or suppliers can negotiate for better and best rates of shipping goods since their interest is to sell their stuff.
Having practiced for many years in the logistics industry, the best delivery terms for overseas tangible movement of goods terms is free on board. Goods are shipped out free to buyer destination port and on arrival transportation cost is paid before cargo is released to the purchaser. Free-shipping can save hugely in terms of overall cost of moving cargo around the world and make it easier for importers to monitor movement through their local agents.
All in all shipping-terms is a choice but the best term to use is FOB term where you are assured of low rates and better negotiation.