Cost, Insurance and Freight and Free on Board are international shipping agreements used in the transportation of goods between a buyer and a seller. CIF is considered a more expensive option when buying goods. FOB contracts relieve the seller of responsibility once the goods are shipped.

What is the difference between CIF and FOB prices?

FOB vs CIF | Difference between FOB and CIF Meaning: FOB means free on board. The price includes all the expenses incurred until goods are actually loaded on board the ship at port of shipment. CIF stands for cost, insurance and freight. The seller meets cost of goods, freight and marine insurance.

What’s the difference between a fob and a CIF contract?

Key Takeaways 1 Cost, Insurance and Freight and Free on Board are international shipping agreements used in the transportation of goods between a buyer and a seller. 2 CIF is considered a more expensive option when buying goods. 3 FOB contracts relieve the seller of responsibility once the goods are shipped.

What’s the difference between CIF and cost and insurance?

Once they’re loaded and in transit, the buyer assumes all responsibility¹. CIF, or “Cost, Insurance and Freight,” puts a lot more responsibility on the seller, who is responsible for paying the freight charges and insurance on the goods, and is responsible for them until they reach the buyer’s nearest port².

Which is more expensive, free on board or CIF?

Cost, Insurance and Freight and Free on Board are international shipping agreements used in the transportation of goods between a buyer and a seller. CIF is considered a more expensive option when buying goods.

What does FOB mean in freight and transportation?

Cost, Insurance and Freight (CIF) and Free on Board (FOB) are international shipping agreements used in the transportation of goods between a buyer and a seller.