A Review of FOB Ningbo Liability Division FOB (Free On Board): The seller's liability extends only until the goods are loaded onto the ship, including export customs clearance and port loading fees. Buyer's Liability: From the moment of loading, the buyer bears the transportation costs, insurance, and maritime risks. Therefore, once the goods leave Ningbo Port, the risks and costs transfer to the buyer.
Direct Impacts of Strait of Hormuz Closure Shipping Disruptions and Delays Shipping routes from China to the Middle East must pass through the Strait of Malacca and the Strait of Hormuz (for some routes). If the straits are closed, ships may have to detour or experience delays. Detours → Increased Shipping Time → Increased Fuel and Transportation Costs Increased Additional Costs Shipping companies may charge "fuel surcharges," "risk surcharges," "delay fees," etc. Under FOB terms, these costs are usually borne by the buyer. Uncertainty Regarding Cargo Arrival Time This will affect downstream warehousing, production, and sales plans. Additional storage and demurrage fees may be incurred, and some of these costs may be passed on to the buyer.
Cost Transmission Logic Seller (Ningbo): Pre-shipment costs remain largely unchanged. Buyer (Middle East): Ocean freight ↑ Surcharges ↑ Delays increase storage and procurement costs ↑ FOB buyer costs will increase, and the extent of the increase depends on the duration of the strait closure and the shipping company's surcharge policies.
Practical Advice Contact the shipping company/freight forwarder: Confirm any detours, delays, or surcharges. Assess insurance: Ensure the buyer's marine insurance covers shipping delays or increased risks. Communicate with the seller: If the goods have not yet been loaded, the seller can assist in arranging alternative ports or shipping schedules.
