/ shipping terms / purchase order / import readiness
How to Review Shipping Terms Before a Purchase Order
Shipping terms affect cost, responsibility, documents, and dispute handling. They should be reviewed before the PO is signed.
Why it matters
Shipping terms are often treated as price details, but they influence control, documentation, insurance, and timing. Before a purchase order is signed, the buyer should understand what the supplier is responsible for and what remains with the importer or forwarder.
Evidence to collect
Collect the quoted Incoterm, port or destination, freight responsibility, insurance responsibility, packing method, export documents, lead time, and any supplier-arranged logistics fees. Compare these details with the invoice and communication trail.
How to review it
Ask whether the term fits the buyer's experience level. A buyer using supplier-arranged shipping should still know what documents will be provided and when. A buyer arranging freight should confirm handoff point and export readiness.
Where buyers get misled
Importers get misled when a low product price hides freight, destination charges, or document gaps. A vague shipping term can also create confusion when goods are delayed or damaged.
Practical next step
Put shipping terms into the PO clearly. Include named place, documents required, packaging expectations, and who will coordinate with the forwarder.
Working checklist
- State Incoterm and named place.
- Confirm document list.
- Check insurance responsibility.
- Compare freight quote with total cost.
- Clarify handoff point before PO.