Ann: Revised Shipping Strategy Yields Substantial Cost Reduction, page-19

if i remember correctly we did have a discussion on this in one of the threads a while ago

havent gone through my posts but i believe i expressed concern re our implied exposure to the freight market

it works like this- the sales term may read FOB but the price we receive for our Mn is derived from a CIF price index i.e it includes a freight component. The higher the freight the less we receive

personally i would have never agreed to a contract term like this. We simply dont know anything about freight and cant controll it.