If WKT is paying the freight and insurance etc - who says the...

If WKT is paying the freight and insurance etc - who says the price won't reflect that.

It won't go from:
"We will pay $XXXX FOB and you just get it to the ship"
to
"We will pay the same price as FOB and you will pay the freight and insurance out of your profit"

Say the customer is willing to pay $1500 per ton delivered to their door. It will be either:
- $1200 per ton FOB and they pay the $300 freight
OR
- $1500 per ton and WKT pay the $300 freight

So if the price of shipping goes up - so would the negotiated CIF price. If it is just a few % here or there - yeah WKT might absorb that. But I'd be pretty sure the contracts would have allowances for variations in shipping. WKT does not have a team of beginners righting these contracts remember......

In my experience it is VERY cheap to ship things TO China. Sooooo many empty containers get returned from all over the world that freight companies are begging to put anything in them again to use the dead space and help pay the port fees each container still incurs.

Numbers pulled out of my @r$e for example only