Transfer Boundary
Maritime shipping rules allocate the point where the seller completes delivery and the buyer assumes subsequent transport expenses. The rule known as fob applies exclusively to sea or inland waterway transport. It determines that the seller must deliver the goods on board the vessel nominated by the buyer at the named port of shipment.
Maritime Clearance
Export formalities represent the initial administrative hurdle in cross-border textile logistics. The seller must complete the customs clearance for export, while the buyer assumes all subsequent responsibilities for transit. This division ensures that local regulatory requirements in the producing country are handled by the party closest to the source.
Cost Demarcation
Ocean freight expenses represent a major portion of the total cost of finished garments. Under this rule, the buyer pays the ocean freight, the import duties, and the cost of local delivery from the arrival port to the final retail warehouse. This structure gives the buyer greater control over shipping routes, transit times, and freight rates, which allows for better logistics optimization.
The buyer also manages the coordinating of marine cargo insurance, ensuring that coverage limits align with the value of the apparel.
Cargo Responsibility
Physical damage during ocean voyages can result in severe financial losses for the importing merchant. The risk of loss or damage passes from the seller to the buyer when the goods are safely loaded on board the ship. From that moment, the buyer secures the insurance and bears all risks of transit.