FOB contracts have approximately two hundred years of history, but the definition has experienced transformations in accordance with changes of transportation. In an era of harsh economic competition controlling costs means to some extent an increase in profits. In import-export the most significant costs occur in the shipping process. In order to figure out how to reduce shipping costs it is necessary to be aware of the fact that FOB contracts occupy an important position in international trade. Before assessing the costs involved in the shipping process under FOB contracts, the definition and the types of FOB contracts must be presented. The costs are determined by the allocation of obligations. Shipping costs are borne by both seller and buyer, but a number of external elements determine the degree of the costs. Although the parties involved in a sale contract cannot change those elements, they still can reduce the costs by making contractual terms more accurate and precise. 

Si Dingnan. How to reduce shipping costs under FOB contract: allocation of obligations. International Journal of Frontiers in Sociology (2025), Vol. 7, Issue 2: 65-70. https://doi.org/10.25236/IJFS.2025.070210.

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