由 lltx1822 The Differences Between FOB, CIF, and CFR in International Trade Terms
FOB, CIF, and CFR are common trade terms in international trade, which clarify the responsibilities and costs of buyers and sellers in transportation. FOB (Free on Board) means that the seller is responsible for delivering the goods to the ship at the port of shipment, and the risk is transferred to the buyer once the goods are on board. The buyer is responsible for arranging transportation and insurance, and bears the freight and insurance costs. CIF (Cost, Insurance, and Freight) requires the seller to arrange transportation, pay the freight to the port of destination, and buy cargo insurance. The risk is transferred to the buyer when the goods are on board, but the seller is responsible for insurance before that. CFR (Cost and Freight) is similar to CIF, but the seller does not need to buy insurance; the buyer is responsible for insuring the goods. These terms affect the choice of transportation mode: under FOB, the buyer can choose their familiar logistics provider; under CIF and CFR, the seller has more control over transportation. It is necessary to clearly stipulate the trade terms in the contract to avoid disputes.