In international trade, product price alone does not show the total cost. Delivery term, freight, insurance, port charges, customs procedures and inland transport can represent a significant part of the landed cost.
Why Incoterms matter
Terms such as EXW, FOB, CIF, CFR or DAP define responsibilities between buyer and seller. If the responsibility point is unclear, extra costs and operational delays can occur.
How to build a logistics plan
- Calculate product volume, weight and package dimensions
- Select container, LCL, air or road transport
- Clarify insurance needs and delivery point
- Check customs documents before shipment
FAHAN plans delivery terms, transport alternatives and document control according to product and target market to reduce unexpected costs.