Ex works (EXW) means that you have to pick up the merchandise at the factory. On the other hand, quot;Free On Boardquot; (quot;FOBquot;... plus more details) nbsp;means that it will be loaded on to a carrier at the specified location.

So quot;FOB factoryquot; would almost be the same as quot;EXWquot;, as onlynbsp;the loading process itself would cause a difference in price. In either case you pay the transport. But if for example the factory is far inside the country, then quot;FOB Seaportquot; would be quite different from quot;EXWquot;, as the FOB priced would inlude the shipping to the port plus loading it on the ship (quot;FOBquot; stands for quot;free on board.

You might want to do the math to see what suits you best, but in practice it often isn't worth the trouble getting involved too much with transportation. If ocean transport is involved, for a newcomer it's typically the best to ask for FOB pricing and even ask them to find a suitable shipper for you.

( Sally )31 Mar,2010

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