u/Winner_Will

Situation

One US client has 2 40HQ shipments ready in Ningbo on April 15, and they must be delivered by April 25 — one to PA, one to TX. With only 10 days, ocean shipping is impossible, so we have to use air freight. We proposed flying to LAX, customs clearance, then trucking to PA and TX, which is much cheaper than direct air to PHL or DFW.

Goods details

Complication

The client wants to pay air freight only after arrival at LAX, and trucking charges only after POD is signed by the consignee. However, the air freight cost is far higher than the cargo value. If we pay upfront and the client delays payment, refuses to pay, or even abandons the goods, we will face huge financial risk.

Question

How should we arrange payment terms to secure the order, meet the tight deadline, and control the risk of advance payment?

Answer

We offered three options:

A) Air freight prepaid; trucking fee payable after POD is signed.

B) 50% payment upfront, balance upon arrival at LAX.

C) If the client insists on full payment only after arrival at LAX, we will have to cancel the order.

How would you handle this situation?

Situation

One US client has 2 40HQ shipments ready in Ningbo on April 15, and they must be delivered by April 25 — one to PA, one to TX. With only 10 days, ocean shipping is impossible, so we have to use air freight. We proposed flying to LAX, customs clearance, then trucking to PA and TX, which is much cheaper than direct air to PHL or DFW.

Goods details

Complication

The client wants to pay air freight only after arrival at LAX, and trucking charges only after POD is signed by the consignee. However, the air freight cost is far higher than the cargo value. If we pay upfront and the client delays payment, refuses to pay, or even abandons the goods, we will face huge financial risk.

Question

How should we arrange payment terms to secure the order, meet the tight deadline, and control the risk of advance payment?

Answer

We offered three options:

A) Air freight prepaid; trucking fee payable after POD is signed.

B) 50% payment upfront, balance upon arrival at LAX.

C) If the client insists on full payment only after arrival at LAX, we will have to cancel the order.

How would you handle this situation?

Situation

One US client has 2 40HQ shipments ready in Ningbo on April 15, and they must be delivered by April 25 — one to PA, one to TX. With only 10 days, ocean shipping is impossible, so we have to use air freight. We proposed flying to LAX, customs clearance, then trucking to PA and TX, which is much cheaper than direct air to PHL or DFW.

Goods details

Complication

The client wants to pay air freight only after arrival at LAX, and trucking charges only after POD is signed by the consignee. However, the air freight cost is far higher than the cargo value. If we pay upfront and the client delays payment, refuses to pay, or even abandons the goods, we will face huge financial risk.

Question

How should we arrange payment terms to secure the order, meet the tight deadline, and control the risk of advance payment?

Answer

We offered three options:

A) Air freight prepaid; trucking fee payable after POD is signed.

B) 50% payment upfront, balance upon arrival at LAX.

C) If the client insists on full payment only after arrival at LAX, we will have to cancel the order.

How would you handle this situation?

Situation

One US client has 2 40HQ shipments ready in Ningbo on April 15, and they must be delivered by April 25 — one to PA, one to TX. With only 10 days, ocean shipping is impossible, so we have to use air freight. We proposed flying to LAX, customs clearance, then trucking to PA and TX, which is much cheaper than direct air to PHL or DFW.

Goods details

Complication

The client wants to pay air freight only after arrival at LAX, and trucking charges only after POD is signed by the consignee. However, the air freight cost is far higher than the cargo value. If we pay upfront and the client delays payment, refuses to pay, or even abandons the goods, we will face huge financial risk.

Question

How should we arrange payment terms to secure the order, meet the tight deadline, and control the risk of advance payment?

Answer

We offered three options:

A) Air freight prepaid; trucking fee payable after POD is signed.

B) 50% payment upfront, balance upon arrival at LAX.

C) If the client insists on full payment only after arrival at LAX, we will have to cancel the order.

How would you handle this situation?

Situation

One US client has 2 40HQ shipments ready in Ningbo on April 15, and they must be delivered by April 25 — one to PA, one to TX. With only 10 days, ocean shipping is impossible, so we have to use air freight. We proposed flying to LAX, customs clearance, then trucking to PA and TX, which is much cheaper than direct air to PHL or DFW.

Goods details

Complication

The client wants to pay air freight only after arrival at LAX, and trucking charges only after POD is signed by the consignee. However, the air freight cost is far higher than the cargo value. If we pay upfront and the client delays payment, refuses to pay, or even abandons the goods, we will face huge financial risk.

Question

How should we arrange payment terms to secure the order, meet the tight deadline, and control the risk of advance payment?

Answer

We offered three options:

A) Air freight prepaid; trucking fee payable after POD is signed.

B) 50% payment upfront, balance upon arrival at LAX.

C) If the client insists on full payment only after arrival at LAX, we will have to cancel the order.

How would you handle this situation?