Packing and Shipping

FOB

The term FOB, short for “Free on Board,” refers to a trade arrangement where the seller is responsible for the transportation of the product only up to the shipment or export port. In addition, the seller bears the costs of loading the goods onto the vessel. However, it is the responsibility of the buyer or importer to cover the expenses of marine freight transport, unloading of goods, insurance, and any other charges when the products arrive at the destination port. In other words, FOB means that the buyer assumes the burden of all costs and risks associated with the transportation of the products from the port of origin to the final destination.

CIF

The cost of CIF (Cost, Insurance, and Freight) also covers the expenses of sea freight charges and insurance required to safely transport your goods to the nearest port. However, it is important to note that this delivery is only until the port. Any further responsibility for the shipment lies with you.

CFR

The term CFR means that the seller has more responsibility; they will pay for and arrange transportation. This can be contrasted with a seller under an FOB shipping transaction; where the seller is merely responsible for delivery of the goods to the port of origin; they will then be transported.

FOT

FOT or “Free on Truck” is a shipping term that denotes the responsibility for the goods being transported by truck. Specifically, FOT should only be used when the goods are being carried by truck. When the goods are loaded onto the truck, the risk of loss or damage is transferred to the buyer, who assumes responsibility for the safe delivery of the goods.