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FOB (Free on Board), CFR (Cost and Freight), and CIF (Cost, Insurance, and Freight) are Incoterms that define the responsibilities of buyers and sellers in International Shipping. In FOB, the seller's responsibility ends once the goods are loaded onto the vessel, while the buyer assumes risk and costs thereafter. CFR includes the cost of shipping to the destination port, but the buyer must handle insurance. CIF further adds insurance coverage for the goods during transit, making the seller responsible for both shipping and insurance costs until the goods reach the destination port.
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Compare the terms of FOB.CFR and CIF?
FOB (Free On Board), CFR (Cost and Freight), and CIF (Cost, Insurance, and Freight) are international shipping terms that define the responsibilities of buyers and sellers. Under FOB, the seller's responsibility ends once the goods are loaded onto the vessel, while the buyer assumes risk and costs from that point onward. In contrast, CFR includes the cost of freight, meaning the seller covers transportation to the destination port, but insurance is not included. CIF adds insurance to the mix, requiring the seller to provide coverage for the goods during transit, thus offering more protection to the buyer.
What is the difference between Ex Works - EXW and CIF?
exw + FOB
What is Platts price for naphtha FOB AG today?
$993.50-996.50/tonne CFR (cost & freight) Japan on Friday 22/02/2013
What are the major implications of FOB and CIF contracts respectively with regard to functional responsibilities cost sharing and risk transfer?
FOB (Free on Board) contracts place the responsibility for costs and risks on the seller until the goods are loaded onto the vessel, after which the buyer assumes responsibility. This means that the seller bears shipping and insurance costs up to that point, while the buyer handles costs and risks during transit. In contrast, CIF (Cost, Insurance, and Freight) contracts require the seller to cover all expenses, including shipping and insurance, until the goods reach the destination port, transferring more risk and cost responsibility to the seller. Therefore, FOB emphasizes buyer responsibility post-loading, while CIF provides greater seller responsibility throughout the shipping process.
What is the difference between CNF and FOB?
FOB = Free On Board. It's the physical geographical point at which title (and the risk of loss) transfers to the buyer from the seller. It can be the shipping point, delivery point, or any intermediary waypoint such as an ocean port on either end. The buyer is responsible for shipping charges from the FOB point onwards as well. CNF = Cost, No Insurance & Freight. The cost of the goods plus freight charges. The buyer is responsible for any insurance costs. This is usually the best way as it allows the buyer to use a local insurance carrier of his choice. See CIF below. CIF = Cost, Insurance & Freight. As above but includes insurance purchased by the shipper. Not a wise idea on international shipments as it may be difficult to file a claim. And the shipper chooses the insurance carrier so rates are often higher.
How to calculate FOB from CIF?
fob
What is cif and fob means?
- CIF is Cost, Insurance and Freight - FOB is Free on Board
What are cif and fob terms?
FOB and CIF are INCOTERMS or international commercials terms (terms of sale).
What is the difference between CIF and FOB?
cif will paid throw of shipper. fob will paid throw of buyer.
What is difference between Fob Cif and cfr?
In the United States FOB is used for domestic shipping and CFR for international shipping. FOB means Freight on Board or Free on Board or the shipper loads the truck or train car. The buyer is responsible for shipping fees. In the United States, the trucking line or Rail Road Company is responsible for the cost if the merchandise is destroyed in an accident. CFR means the shipper pays the expenses of getting the shipment onto the boat or airplane. Shipping fees are the responsibility of the buyer. Insuring the merchandise incase of shipwreck or piracy is also the responsibility of the purchaser. CIF means the seller pays for the expenses of getting the freight loaded, the insurance, and the freight.
Compare the terms of FOB.CFR and CIF?
FOB (Free On Board), CFR (Cost and Freight), and CIF (Cost, Insurance, and Freight) are international shipping terms that define the responsibilities of buyers and sellers. Under FOB, the seller's responsibility ends once the goods are loaded onto the vessel, while the buyer assumes risk and costs from that point onward. In contrast, CFR includes the cost of freight, meaning the seller covers transportation to the destination port, but insurance is not included. CIF adds insurance to the mix, requiring the seller to provide coverage for the goods during transit, thus offering more protection to the buyer.
What are ENCO terms for export?
The ENCO terms are CIF and FOB
What is the difference between Ex Works - EXW and CIF?
exw + FOB
Fob or cif letter of credit?
CIF Means :- cost ,insurance & freight charges beared by exporter & FOB means free on board exporter will beared the charges till shipment & after that he will be not responsible for any charges related to consighnment.
What is FOB and CIF prices?
FOB (Free on Board) and CIF (Cost, Insurance, and Freight) are terms used in international shipping to define the responsibilities of buyers and sellers. FOB indicates that the seller is responsible for the goods until they are loaded onto the shipping vessel, while the buyer assumes responsibility once the goods are on board. In contrast, CIF includes the cost of the goods, insurance, and freight charges, meaning the seller covers these expenses until the goods reach the buyer's destination port. Essentially, CIF provides a higher level of service and security for the buyer compared to FOB.
What is FOB or CIF diamond parcel?
FOB stands for Free on Board. It means that the buyer determines how the item is shipped and the seller must oblige and get it there. CIF stands for Cost, Insurance and Freight. This means the seller must arrange for transportation and provide papers to the buyer.
What is difference between CIF and FOB incoterms?
The key difference is that the main costs of carriage are paid for by buyer in a FOB contract, so he will take care of the vessel shipment. Under a CIF arrangement, the seller take this responsibility will deliver the contracted commodity at buyers destined location.
