Stil 1<\/title>\n <style>\n .box_1 {\n margin: 40px auto;\n padding: 20px 25px;\n background-color: #d9dee5;\n border-left: 6px solid #f05a28;\n border-top: 1px solid #3b4f6b;\n border-right: 1px solid #3b4f6b;\n border-bottom: 1px solid #3b4f6b;\n }\n\n .title_1 {\n font-weight: 700;\n color: #2c466b;\n margin-bottom: 10px;\n }\n\n .text_1 {\n font-style: italic;\n color: #2c466b;\n line-height: 1.4;\n }\n <\/style>\n<\/head>\n<body>\n\n <div class=\"box_1\">\n <div class=\"title_1\">\n ln fact, FOB should never have been included in an air freight contract. \n <\/div>\n <div class=\"text_1\">\nAccording to lncoterms\u00ae 2020 by the lnternational Chamber of Commerce, FOB is a term strictly applicable to sea and inland waterway transport only. \n <\/div>\n <\/div>\n\n<\/body>\n<\/html>\n\n\n\n<h2 class=\"wp-block-heading\">Why Do We Still Use FOB for Air Freight?<\/h2>\n\n\n\n<p>OB – Free On Board – is probably the most widely recognized lncoterm in the world. lt appears in banking forms, legacy contracts, and templates inherited from procurement departments that have worked the same way for decades. Many logistics managers still use it out of ha bit: “We’ve always used FOB – it works.”<br>But that assumption is flawed.<br>FOB was designed for non-containerized cargo loaded onto a vessel, where there is a clear physical point at which risk transfers from seller to buyer: when the goods pass the ship’s rail.<br>ln air freight, that moment simply does not exist. There is no vessel, no “on board” equivalent, and no physical reference point where responsibility clearly shifts.<\/p>\n\n\n\n<p>Under lncoterms\u00ae 2020, FOB – along with CIF, CFR, and FAS – is explicitly classified under “Sea and lnland Waterway Transport Only.” These rules are not intended for use in containerized, multimodal, road, rail, or air transport.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What Happens in Practice When You Use FOB for Air Freight?<\/h2>\n\n\n\n<p>The problem doesn’t show up in every shipment.<br>lt shows up when something goes wrong-and that’s when ambiguity becomes expensive.<\/p>\n\n\n\n<!DOCTYPE html>\n<html lang=\"ro\">\n<head>\n <meta charset=\"UTF-8\">\n <title>Stil_2<\/title>\n <style>\n .box_2 {\n margin: 40px auto;\n padding: 20px 25px;\n background-color: #FFF3E5;\n border-left: 6px solid #f05a28;\n border-top: 1px solid #3b4f6b;\n border-right: 1px solid #3b4f6b;\n border-bottom: 1px solid #3b4f6b;\n }\n\n .title_2 {\n font-weight: 700;\n color: #2c466b;\n margin-bottom: 10px;\n }\n\n .text_2 {\n font-style: italic;\n color: #2c466b;\n line-height: 1.4;\n }\n <\/style>\n<\/head>\n<body>\n\n <div class=\"box_2\">\n <div class=\"title_2\">\n <p><span style=\"color: #ff6600;\">Scenariul 1:<\/span> Cargo Damaged Between Terminal and Aircraft <\/p>\n <\/div>\n <div class=\"text_2\">The supplier delivers the goods to the airport cargo terminal. The buyer has booked the flight. \nThe cargo is damaged somewhere between handover at the terminal and loading onto the aircraft. \nWho is responsible? \nFOB does not clearly define the point of risk transfer for air freight, so both parties can argue different interpretations.\n <\/div>\n <\/div>\n\n<\/body>\n<\/html>\n\n\n\n<!DOCTYPE html>\n<html lang=\"ro\">\n<head>\n <meta charset=\"UTF-8\">\n <title>Stil_2<\/title>\n <style>\n .box_2 {\n margin: 40px auto;\n padding: 20px 25px;\n background-color: #FFF3E5;\n border-left: 6px solid #f05a28;\n border-top: 1px solid #3b4f6b;\n border-right: 1px solid #3b4f6b;\n border-bottom: 1px solid #3b4f6b;\n }\n\n .title_2 {\n font-weight: 700;\n color: #2c466b;\n margin-bottom: 10px;\n }\n\n .text_2 {\n font-style: italic;\n color: #2c466b;\n line-height: 1.4;\n }\n <\/style>\n<\/head>\n<body>\n\n <div class=\"box_2\">\n <div class=\"title_2\">\n <p><span style=\"color: #ff6600;\">Scenario 2:<\/span> Customs Declaration Discrepancy<\/p>\n <\/div>\n <div class=\"text_2\">\n The bank requires a letter of credit and asks for an lncoterm. The buyer writes FOB. \nAt the destination, customs authorities calculate duties based on the CIF value {cost + insurance + freight), but the documents reflect a FOB value, excluding freight. \nThe resuit? A declaration discrepancy, fines, and severa I days of delay.\n <\/div>\n <\/div>\n\n<\/body>\n<\/html>\n\n\n\n<!DOCTYPE html>\n<html lang=\"ro\">\n<head>\n <meta charset=\"UTF-8\">\n <title>Stil_2<\/title>\n <style>\n .box_2 {\n margin: 40px auto;\n padding: 20px 25px;\n background-color: #FFF3E5;\n border-left: 6px solid #f05a28;\n border-top: 1px solid #3b4f6b;\n border-right: 1px solid #3b4f6b;\n border-bottom: 1px solid #3b4f6b;\n }\n\n .title_2 {\n font-weight: 700;\n color: #2c466b;\n margin-bottom: 10px;\n }\n\n .text_2 {\n font-style: italic;\n color: #2c466b;\n line-height: 1.4;\n }\n <\/style>\n<\/head>\n<body>\n\n <div class=\"box_2\">\n <div class=\"title_2\">\n <p><span style=\"color: #ff6600;\">Scenario 3:<\/span> Cargo Not Covered by lnsurance <\/p>\n <\/div>\n <div class=\"text_2\">\n lnsurance \nDamage occurs during transport. \nThe buyer’s insurer claims coverage starts from the moment the goods are handed over to the carrier. The seller’s insurer argues that the risk transferred to the buyer once the goods were delivered to the terminal. \nThis creates a gap – sometimes just a few hours, sometimes longer – during which the cargo is not clearly covered by either party.\n <\/div>\n <\/div>\n\n<\/body>\n<\/html>\n\n\n\n<h2 class=\"wp-block-heading\">The Solution: FCA-The lncoterm Designed for This Exact Situation<\/h2>\n\n\n\n<p>FCA (Free Carrier) is not a workaround. lt is the lncoterm specifically created for situations where goods are handed over to a carrier at a terminal, warehouse, or airport – before actual loading onto the main mode of transport.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">How FCA Works for Air Freight<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The seller delivers the goods to the agreed location – for example, the airport cargo terminal of departure<\/li>\n\n\n\n<li>The seller completes export customs clearance<\/li>\n\n\n\n<li>From that moment, risk and costs are transferred to the buyer<\/li>\n\n\n\n<li>The buyer {or their freight forwarder) takes over: books the flight, manages transport documents, and arranges delivery at the destination<\/li>\n<\/ul>\n\n\n\n<p>Key Advantage of FCA: Precision<br>FCA removes ambiguity by defining an exact handover point, such as<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>FCA Henri Coand\u0103 Airport, Bucharest<\/li>\n\n\n\n<li>FCA Frankfurt Airport Cargo Terminal<\/li>\n<\/ul>\n\n\n\nThere is no room for interpretation – risk transfers at a clearly defined, documented location.\n\n\n\n<h2 class=\"wp-block-heading\">FOB vs. FCA for Air Freight \u2014 Direct Comparison<\/h2>\n\n\n\n<div class=\"fob-table-wrap\">\n <table class=\"fob-table\">\n <thead>\n <tr>\n <th>Criterion<\/th>\n <th>FOB (Free on Board)<\/th>\n <th>FCA (Free Carrier)<\/th>\n <\/tr>\n <\/thead>\n <tbody>\n <tr>\n <td>Applicable to air freight?<\/td>\n <td><span class=\"icon-x\"><\/span> No (per International Chamber of Commerce Incoterms\u00ae 2020)<\/td>\n <td><span class=\"icon-check\"><\/span> Yes \u2014 specifically designed for this<\/td>\n <\/tr>\n <tr>\n <td>Clear point of risk transfer<\/td>\n <td><span class=\"icon-x\"><\/span> Ambiguous<\/td>\n <td><span class=\"icon-check\"><\/span> At handover to the carrier<\/td>\n <\/tr>\n <tr>\n <td>Export customs – who handles it?<\/td>\n <td>Seller<\/td>\n <td>Seller<\/td>\n <\/tr>\n <tr>\n <td>Flight booking\/freight arrangement<\/td>\n <td>Buyer<\/td>\n <td>Buyer<\/td>\n <\/tr>\n <tr>\n <td>Recommended by ICC for air transport<\/td>\n <td><span class=\"icon-x\"><\/span>No<\/td>\n <td><span class=\"icon-check\"><\/span><\/td>\n <\/tr>\n <tr>\n <td>Compatible with letters of credit<\/td>\n <td><span class=\"icon-warning\"><\/span> Frequently misused<\/td>\n <td><span class=\"icon-check\"><\/span> Yes, with bank alignment<\/td>\n <\/tr>\n <\/tbody>\n <\/table>\n<\/div>\n\n<style>\n.fob-table-wrap {\n max-width: 1100px;\n margin: 40px auto;\n font-family: Arial, sans-serif;\n}\n\n.fob-table {\n width: 100%;\n border-collapse: collapse;\n}\n\n.fob-table th {\n background: #2b4a78;\n color: #fff;\n padding: 16px;\n text-align: center;\n border: 1px solid #c0c6cf;\n}\n\n.fob-table td {\n color: #2a2e3b;\n padding: 18px;\n border: 1px solid #c0c6cf;\n vertical-align: middle;\n}\n\n\/* \ud83d\udd25 Alternare r\u00e2nduri *\/\n.fob-table tbody tr:nth-child(odd) {\n background-color: #e3e5e8;\n}\n\n.fob-table tbody tr:nth-child(even) {\n background-color: #f0f1f3;\n}\n\n.fob-table td:first-child {\n width: 40%;\n}\n\n.fob-table td:nth-child(2),\n.fob-table td:nth-child(3) {\n width: 30%;\n text-align: center;\n}\n\n\/* ICONS *\/\n.icon-check,\n.icon-x,\n.icon-warning {\n display: inline-block;\n margin-right: 10px;\n font-weight: bold;\n}\n\n.icon-check::before {\n content: \"\u2714\";\n font-size: 22px;\n}\n\n.icon-x::before {\n content: \"\u2716\";\n font-size: 22px;\n}\n\n.icon-warning::before {\n content: \"\u26a0\";\n font-size: 22px;\n}\n<\/style>\n\n\n\n<h2 class=\"wp-block-heading\">“But My Bank Requires FOB on the Letter of Credit \u2026 “<\/h2>\n\n\n\n<p>This is the most common objection. Many banking forms still list FOB as a default option because they were originally designed around maritime transport and have not been updated.<\/p>\n\n\n\n<p>The solution is not to comply with an incorrect term – it’s to educate the bank.<br>The lnternational Chamber of Commerce provides clear guidance on why FCA is the correct lncoterm for air freight and why FOB creates ambiguity in these contexts. An experienced freight forwarder can support this discussion and help amend the letter of credit terms accordingly.<\/p>\n\n\n\n<!DOCTYPE html>\n<html lang=\"ro\">\n<head>\n <meta charset=\"UTF-8\">\n <title>Stil 1<\/title>\n <style>\n .box_1 {\n margin: 40px auto;\n padding: 20px 25px;\n background-color: #d9dee5;\n border-left: 6px solid #f05a28;\n border-top: 1px solid #3b4f6b;\n border-right: 1px solid #3b4f6b;\n border-bottom: 1px solid #3b4f6b;\n }\n\n .title_1 {\n font-weight: 700;\n color: #2c466b;\n margin-bottom: 10px;\n }\n\n .text_1 {\n font-style: italic;\n color: #2c466b;\n line-height: 1.4;\n }\n <\/style>\n<\/head>\n<body>\n\n <div class=\"box_1\">\n <div class=\"title_1\">\n Why This Matters \n <\/div>\n <div class=\"text_1\">\n \u2022 A correctly chosen lncoterm protects all parties involved – including the bank.<\/br>\n\u2022 A short-term compromise can turn into a real legal and financial issue in the event of damage or dispute.<\/br>\nln practice, using FCA instead of FOB reduces ambiguity, aligns with lncoterms\u00ae 2020, and ensures that responsibilities are clearly defined from the outset. \n <\/div>\n <\/div>\n<\/body>\n<\/html>\n\n\n\n<h2 class=\"wp-block-heading\">What You Should Do in Practice<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Audit your current contracts: wherever FOB appears in air or multimodal shipments, replace it with F.CA<\/li>\n\n\n\n<li>Always specify the exact location: not just FCA Bucharest, but FCA Henri Coand\u0103 Airport, Bucharest – vagueness creates cost<\/li>\n\n\n\n<li>Align insurance with the actual risk transfer point: coverage should start exactly where the seller’s responsibility ends.<\/li>\n\n\n\n<li>Complete documents correctly: if you use letters of credit, ensure the correct lncoterm is referenced<\/li>\n\n\n\n<li>Work with an experienced freight forwarder: in practice, a forwarder specialized in international air freight handles FCA, EXW, or DDP shipments daily and can guide you toward the right choice for your specific case<\/li>\n<\/ul>\n\n\n\n<div style=\"height:29px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<!DOCTYPE html>\n<html lang=\"ro\">\n<head>\n <meta charset=\"UTF-8\">\n <title>Stil_3<\/title>\n <style>\n .box_3 {\n margin: 40px auto;\n padding: 20px 25px;\n background-color: #FFF3E5;\n border-left: 1px solid #f05a28;\n border-top: 1px solid #f05a28;\n border-right: 1px solid #f05a28;\n border-bottom: 1px solid #f05a28;\n }\n\n .title_3 {\n font-weight: 700;\n color: #2c466b;\n margin-bottom: 10px;\n display: flex;\n justify-content: center;\n align-items: center;\n }\n\n .text_3 {\n font-style: italic;\n color: #2c466b;\n line-height: 1.4;\n display: block;\n width: 100%;\n text-align: center;\n }\n <\/style>\n<\/head>\n<body>\n\n <div class=\"box_3\">\n <div class=\"title_3\">\n <p><span style=\"color: #ff6600;\"><\/span>Are you managing ongoing contracts or preparing to negotiate new delivery terms? <\/p>\n <\/div>\n <div class=\"text_3\">\n OEPIA specialists provide practicai insights based on real international air freight operations.<\/br>\n<a href=\"mailto:air.sea@oepia.ro\">\ud83d\udc49 Speak directly with an OEPIA expert: → air.sea@oepia.ro<\/a>\n <\/div>\n <\/div>\n\n<\/body>\n<\/html>\n\n\n\n<p><strong>Note:<\/strong> lncoterms\u00ae is a registered trademark of the lnternational Chamber of Commerce. This content provides general information and does not constitute legal advice.<\/p>\n\n\n\n<p><strong>OEPIA – Fresh transport and logistics solutions. Your cargo is our priority.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Imagine the scenario: you’ve signed the contract, agreed on the price, written “FOB Shanghai” on the invoice, and shipped the goods for export. Everything seems fine. But when the cargo […]<\/p>\n","protected":false},"author":5,"featured_media":5052,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[67],"tags":[],"class_list":["post-5105","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-events-en","cat-67-id","has_thumb"],"_links":{"self":[{"href":"https:\/\/www.oepia.ro\/en\/wp-json\/wp\/v2\/posts\/5105","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.oepia.ro\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oepia.ro\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oepia.ro\/en\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oepia.ro\/en\/wp-json\/wp\/v2\/comments?post=5105"}],"version-history":[{"count":15,"href":"https:\/\/www.oepia.ro\/en\/wp-json\/wp\/v2\/posts\/5105\/revisions"}],"predecessor-version":[{"id":5167,"href":"https:\/\/www.oepia.ro\/en\/wp-json\/wp\/v2\/posts\/5105\/revisions\/5167"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oepia.ro\/en\/wp-json\/wp\/v2\/media\/5052"}],"wp:attachment":[{"href":"https:\/\/www.oepia.ro\/en\/wp-json\/wp\/v2\/media?parent=5105"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oepia.ro\/en\/wp-json\/wp\/v2\/categories?post=5105"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oepia.ro\/en\/wp-json\/wp\/v2\/tags?post=5105"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}

{"id":5105,"date":"2026-04-01T10:03:20","date_gmt":"2026-04-01T08:03:20","guid":{"rendered":"https:\/\/www.oepia.ro\/de-ce-fob-e-gresit-la-transport-aerian-international-si-cu-ce-il-inlocuiesti\/"},"modified":"2026-04-01T13:17:04","modified_gmt":"2026-04-01T11:17:04","slug":"using-fob-for-air-freight-heres-why-lts-wrong-and-your-better-options","status":"publish","type":"post","link":"https:\/\/www.oepia.ro\/en\/using-fob-for-air-freight-heres-why-lts-wrong-and-your-better-options\/","title":{"rendered":"Using FOB for Air Freight? Here’s Why lt’s Wrong andYour Better Options"},"content":{"rendered":"\n

<\/p>\n\n\n\n

Imagine the scenario: you’ve signed the contract, agreed on the price, written “FOB Shanghai” on the invoice, and shipped the goods for export. Everything seems fine. But when the cargo reaches its destination, a dispute arises: <\/p>\n\n\n\n

\u2022 Who was responsible at the moment the cargo was picked up from the supplier’s warehouse?
\u2022 Who pays for incomplete export documentation?
\u2022 And most importantly, who covers the damage for the three pallets that were compromised somewhere between the warehouse and the aircraft?<\/p>\n\n\n\n

The answer isn’t found anywhere in the contract. This is mainly because FOB does not clearly define these responsibilities in the context of air freight.<\/p>\n\n\n\n