The price in an offer is not yet the price of the deal. Two lots of the same grain can cost different amounts if the basis, the station and the logistics costs differ. Here is how to calculate everything in advance.
Start with the basis
- EXW: the price at the seller's warehouse. Loading, delivery to the station and documents are on your side.
- FCA: the seller hands the lot to the carrier and, as a rule, loads it and handles the documents.
The same "price per tonne" on different bases means a different final cost.
What makes up the final price
- The price of the lot at the basis.
- Cleaning, drying and grain conditioning, if needed.
- Storage until shipment.
- Loading into a wagon or truck.
- Delivery to the station, rail tariff and station services.
- Railcars, liners, big bags or containers.
- Quality and documents: laboratory, test reports, registration in FGIS "Zerno" (the Russian state grain information system).
- VAT and payment terms.
- Losses during storage and transport.
An illustrative example
First offer: RUB 11,000/t EXW. Loading is not included: RUB 500/t to the station and RUB 250/t for loading, so RUB 11,750/t in total. Second offer: RUB 11,300/t FCA, loading included, station nearby, so RUB 11,300/t in total. The prices are illustrative, but the principle holds: the offer that looks more expensive often turns out cheaper.
What to ask before signing the contract
- Which basis applies and what it includes.
- When the lot is ready for shipment.
- What the quality is and whether there is a test report.
- Which station it ships from and who pays for wagons and demurrage.
- What the payment procedure is.
How we help
We calculate the deal economics before the start: basis, logistics, costs and the final price for your delivery address. This lets you compare offers fairly and avoid losing money on details.
Have a lot or a requirement? Send a request and we will run the numbers.
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