1. Our trade rule
Nyaliko currently sells commercial green-coffee orders only on FOB terms. Every binding quote or contract must state the exact named port of shipment and the rule as: FOB [named port of shipment], Incoterms® 2020. We do not use “FOB” as shorthand for delivery to the buyer’s warehouse or destination port.
FOB is for sea or inland-waterway transport. Under the ICC rule, delivery and risk transfer when the coffee is loaded on board the vessel nominated by the buyer at the named port of shipment.
2. What Nyaliko handles
- Prepare the contracted coffee and agreed export packaging.
- Arrange movement to the named port of shipment and complete export clearance.
- Load or procure loading of the goods on board the buyer-nominated vessel, as required by the written contract.
- Provide the commercial and export documents listed in the written contract.
- Notify the buyer when delivery under the FOB rule has occurred.
3. What the buyer handles
- Nominate the vessel and give complete, timely loading instructions.
- Contract and pay for ocean freight from the named port of shipment.
- Arrange cargo insurance. FOB does not require Nyaliko to insure the buyer’s ocean risk.
- Handle transit and import clearance, duties, taxes, inspections, brokerage, destination charges, and delivery after the port of shipment.
- Handle costs caused by late, changed, or incomplete vessel instructions where the contract or Incoterms® 2020 allocates them to the buyer.
4. What the quote must confirm
The written quote or contract must identify the coffee and specification, quantity and tolerance, packaging, price and currency, payment, named port and loading point, shipment window, vessel-notice deadline, documents, inspection, claims period, and any agreed charges outside the standard FOB allocation.
FOB pricing is not a landed-cost estimate. Buyers should obtain their own freight, insurance, import, tax, brokerage, storage, and inland-delivery costs before accepting an order.
5. Correct use of FOB
The ICC notes that FOB is not appropriate when goods are handed to a carrier at a container terminal before they are on board the vessel; FCA is generally considered instead. Because Nyaliko offers FOB only, we will accept an FOB sale only when the documented logistics arrangement allows Nyaliko to complete true on-board delivery. If it does not, we will not describe the transaction as FOB or accept the order on misleading terms.
Authoritative references
Need clarification?
Ask before you commit.
We would rather clarify a term in writing than let a buyer make an assumption.
Email ben.serunyigo@nyaliko.com