The North American Export Grain Association (NAEGA) has released a new model contract for Free on Board (FOB) transactions at U.S. and Canadian ports, named Contract No. 2 FOB Export Contract or “NAEGA 2.” This updated contract, along with Addendum No. 1 and a revised Terms of Use document, became effective today, April 15, 2024, and replace the versions last updated on March 30, 2018.
The updated documents were developed after a comprehensive two-year review by NAEGA’s Committee on Contracts. This review focused on clause-by-clause assessments aimed at enhancing clarity, ensuring the contract aligns with current commercial practices, and integrating modern electronic communication and digital solutions into its framework.
Matt Hopkins, Chairman of the Board at NAEGA, highlighted the importance of the revisions: “The NAEGA 2 is the cornerstone of the export grain trade industry, and its revision is critical to the continuity of trade across North America. We are incredibly proud of the work the NAEGA Contracts Committee has done over the last two years to produce a document that serves our industry and allows us to transact.”
