I think this is a White Hat move. It is hurting China as they don't get paid until goods are unloaded and it is also causing Biden to be cased in a bad light as he can't get the issue under control and is causing a disruption in the stores.
Not fully true on the payment. It depends on the terms of the sale. Most product is purchased FOB origin Port, which basically means that the manufacturer in China gets paid once it is loaded on a container and put on a ship. Since there is a shortage of containers in China, it still has the same effect.
Each consignee negotiates these with their consignors individually, so there’s a whole mix of times they get paid. The suppliers in China are DEFINITELY feeling the pain. Since COVID shut a lot of them down for awhile, not being able to get their goods into the US is just salt in the wound.
Source I work in customs and trade compliance for one of the top ten importers into the US.
Done plenty of Import from China via ships - at least 95% is FOB. It is the standard practice for anything that is LTL or FTL (less than container, or full container) size.
I think this is a White Hat move. It is hurting China as they don't get paid until goods are unloaded and it is also causing Biden to be cased in a bad light as he can't get the issue under control and is causing a disruption in the stores.
Not fully true on the payment. It depends on the terms of the sale. Most product is purchased FOB origin Port, which basically means that the manufacturer in China gets paid once it is loaded on a container and put on a ship. Since there is a shortage of containers in China, it still has the same effect.
The list of incoterms can be found here:
http://www.priorityexpress.ca/DATA/TEXTEDOC/List%20of%20Incoterms.pdf
Each consignee negotiates these with their consignors individually, so there’s a whole mix of times they get paid. The suppliers in China are DEFINITELY feeling the pain. Since COVID shut a lot of them down for awhile, not being able to get their goods into the US is just salt in the wound.
Source I work in customs and trade compliance for one of the top ten importers into the US.
Are we seeing some of the pain manifest in financial debacles like Evergrande, etc?
got any extra containers in Ningbo?
Proof? FOB is only one kind of contract. There are many others. COD (Cash on Delivery) for instance. It depends.
It is a shit show today. 40 footers were $2100 a year ago. Just gave approval for a $25,000 container.
Done plenty of Import from China via ships - at least 95% is FOB. It is the standard practice for anything that is LTL or FTL (less than container, or full container) size.