Re: [Konrad] 20/08/07 - Contract terms
[ QUOTE ]
Sorry Garcia, I love you but even after reading the definitions I still don't get this.
[/ QUOTE ]
Ok I am guessing that anyone reading down to here has seen the comic, so here's the explanation! The explanation will make the joke not funny though.
FOB stands for 'Free on Board'. It is one of the most common terms used in shipping/freight when the purchaser (e.g. Wal-Mart) wants to buy stuff from the supplier (e.g. a factory in China). It specifies that the supplier only has to transport the goods to the port of loading.
CIF/CFR are also common terms, which specify that title to goods pass to the purchaser upon arriving at port of loading and loaded on to the ship. However, this time, the supplier has to pay the freight charges, so he is responsible for getting the goods to the port of discharge. The purchaser only has to arrange transport from his port to his warehouse.
The joke is that when someone says FOB/CIF, he is discussing with the supplier how he wants the goods shipped to him.
That's funny, because 'ship it' means getting goods shipped to him, too!
Ha ha!
|