FOB is the default quote from Chinese factories, so most import budgets are built on it. Knowing precisely where FOB costs stop — and what starts billing to you at the port — is the difference between a landed-cost estimate and a guess.
Quick answer
Under FOB, the supplier usually handles export-side delivery until goods are loaded on board at the named port. The buyer typically controls and pays for main freight, insurance if desired, destination charges, import clearance, duties, taxes, and final delivery.
Why this matters for buyers
The FOB price covers the goods, export clearance, and getting cargo on board. Everything after that — ocean freight, insurance, destination fees, customs, final delivery — lands on you, and destination charges in particular surprise buyers who assumed the big number was the whole number.
FOB details buyers should collect
Build the landed cost from the FOB quote outward, with real numbers rather than allowances.
Collect these figures before ordering:
- Named China port, such as FOB Shanghai, FOB Ningbo, FOB Qingdao, or FOB Shenzhen.
- Carton quantity, dimensions, gross weight, CBM, pallet details, and cargo-ready date.
- Export documents the supplier provides and timing for document review.
- Forwarder quote for ocean or air freight, destination charges, customs, and delivery.
- Duties, taxes, broker fees, insurance, exams, warehouse receiving, and inland trucking.
- Inspection timing before balance payment and shipment release.
What FOB does not include
FOB does not mean delivery to the buyer's warehouse. The buyer still needs a forwarder and destination-side cost estimate.
Carton dimensions can change freight cost, especially for bulky ecommerce goods. FOB quotes from different ports should not be compared without freight estimates.
A practical FOB China example
A buyer sourcing home goods from Zhejiang may receive FOB Ningbo pricing. Before approving the order, the buyer should ask for estimated carton dimensions and send them to a forwarder. If the cartons are larger than expected, the landed cost may change enough to affect the product decision.
Questions to ask suppliers or partners
- Which China port is named in the FOB quote?
- When will final carton details be available?
- What export documents will the supplier provide?
- Can my forwarder quote the shipment before production starts?
- How will inspection and balance payment fit the shipping schedule?
How Funda Sourcing supports this step
Funda Sourcing can help buyers organize FOB quote assumptions, carton data, supplier document questions, forwarder coordination, and inspection timing. That makes FOB easier to compare as part of landed cost.
Buyers should confirm customs, duties, destination charges, and freight details with a qualified forwarder or customs broker.
Funda helps buyers turn FOB quotes into full landed-cost pictures as part of its sourcing services.
For related freight decisions, compare CIF versus FOB, FCA versus FOB, and shipping planning questions.
Frequently Asked Questions
Funda take
FOB is often practical because it separates supplier production from buyer-controlled freight. It works best when carton details, port, documents, and destination costs are checked early.
FOB from China is a fine arrangement — it is the market standard for a reason. Just budget from the warehouse door backward, not from the FOB number forward.
Building a landed cost from an FOB quote?
Funda helps buyers collect the missing numbers — freight, destination fees, duties — and coordinate shipping from China so the budget matches reality.
