On the Ground, CIF or FOB
Government contracts have specific requirements for product acquisition and delivery timelines. Some contracts :
- require the vendor be factory direct with product on the ground in the United States for immediate sales.
- allow the vendor to purchase product Free On Board at an origin port and leverage military transportation resources
- allow the vendor to purchase product Cost, Insurance, Freight (CIF) to a domestic port, then ship overland to the final destination.
We have factory partners that stage product in the united states continuously. As a result our government partners can essentially get free shipping to a U.S. port. We just then arrange for overland transportation to the final destination. This allows us to satisfy contract requirements for on the ground products.
Though our logistics partners we have the ability to provide reliable delivery of product from any foreign port to a nearby port, warehouse and ship to our federal partners.
Shipping by sea takes up to 30 days and with critical shortages of pallets, containers and backups at ports there is a great chance that shipping will be delayed. Air transportation makes sense for a shipment that is not too heavy and can be broken up by cases or pallets. However, the cost of air freight could add $2 per item or more.
Because we are able to source at factory direct prices we have access to low pricing that allow us to add air freight and still have product pricing that is competitive with on the ground pricing. Leveraging Air Freight when needed for critical applications allows us to meet the timing requirements of federal contracts and ensure reliable product deliveries..