However, FOB, CIF, and CFR are all terms which relate to the delivery of the goods and they will affect the price of those goods.

FOB means Free On Board. This means that the goods will be deemed to be delivered to the Buyer at the point that the goods pass the ship's rail. Obviously, this will normally be as the goods are swung in their container onto the ship.

CIF means Cost, Insurance, and Freight. This means that the Seller is providing a price which includes the cost of the goods, the insurance of the goods for their journey to their destination port/unloading point, and the cost of the ocean freight or whichever method of freight is being used to transport the goods to the Buyer. Therefore, delivery of the goods when quoted CIF will usually take place at the port of unloading.

CFR is also sometimes termed as C&F. This means cost and freight, and is where the Seller is providing a price which includes the cost of the goods and of the freight, but NOT insurance. Therefore it is similar to CIF but does not include insurance of the goods on their journey to the Buyer.

For more and detailded information check:

http://www.maerskline.com/link/?page=brochure&path=/glossary/f

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