WHAT IS THE DIFFERENCE BEETWEEN FOB,CFR(C & F) and CIF ? CAN ANYBODY EXPLAIN GIVING AN EXAMPLE PLEASE ?

Replying to [smileplease]:hi, ...you can find the good answer by read my articles, FOB Term and CIF Term. My article are clear and understanding for everybody who read it!
Notes: For CIF(Cost Insurance Freight) and C&F/CFR ( Cost And Freight) are the same , the different is only the insurance. C&F is Buyer responsible for the cargo insurance and other costs and risks but at CIF Seller who take responsible for the cargo insurance and other cost and risk.

Ok, for details info, read my articles by davindo...thanks

Replying to [davindo]:..got it..thank you..

Replying to [smileplease]:

Dear Friend,


FOB means Free on Board (vessel), that means seller's responsibility ends once the goods are on the board/vessel. FOB term should always accompany with port of loading place.


CFR menas Cost and freight. Means, the buyer pays cost of goods and freight charges. CFR term should always accompany with port of unloading place.


CIF : means cost, insurance and freight. That means buyer pays for cost of goods, insurance and freight.


Hope you understood.

Going to rephrase these definitions.. CIF means the SUPPLIER will quote a price to the BUYER that INCLUDES cost+freight+insurance. In other words the buyer gets a quote that includes (basically) the cost to the buyers port as well as insurance coverage for the trip.

CFR is excatly the same but with no insurance included in the quoated price.

I understand  what was meant by the above, but it was worded a little awkardly.Foow

Replying to [smileplease]:does CIF means the BUYER has to pay the charges ? I always thought it is the SELLER's duty to pay all charges if it is CIF. please advise.

 

Yes the SELLER PAYS the actual charge.... However that cost will be built into the invoice they ask the BUYER to pay them...... They INCLUDE all the "I&F" costs in the invoice they are going to charge the buyer.

eg if the FOB price is $50.00 per unit... the CIF cost will be something like $75.00 per unit.

Quoting from [smileplease]:


WHAT IS THE DIFFERENCE BEETWEEN FOB,CFR(C & F) and CIF ? CAN ANYBODY EXPLAIN GIVING AN EXAMPLE PLEASE ?

Answer to Roy 126,  Yes. Basicly if buyer required from you CIF your quotation will be higher than FOB or C&F at least you'd like to make a gift to your new buyer and give him standard price with Insurance included,  so if you are a buyer you will pay for it after all because price you'll get from your supplier will be higher than usual. That's why it is so important to ask supplier for quotations for specified freight type. These quotations will usually be different for FOB , C&F, CIF


Best of luck...

Quoting from [smileplease]:


WHAT IS THE DIFFERENCE BEETWEEN FOB,CFR(C & F) and CIF ? CAN ANYBODY EXPLAIN GIVING AN EXAMPLE PLEASE ?

here is my brief explanation :

FOB :

Seller delivered goods / transfer of risk & Costs : On Boad of ship in the port of loading
Seller Costs & Risks : stop after placing goods on board of Ship in the port of loading

Buyer Costs & Risks : start from goods on board of Ship in the port of loading
CNF :

Seller delivered goods / transfer of risk & Costs : On Boad of ship in the port of loading
Seller Costs : stop after sending goods on board of Ship to port of destination

Buyer Costs : start after goods on board of Ship to port of destination

Seller Risks : stop after placing goods on board of Ship in the port of loading

Buyer Risks : start from goods on board of Ship in the port of loading
CIF :

Seller delivered goods / transfer of risk & Costs : On Boad of ship in the port of loading
Seller Costs : stop after sending goods on board of Ship to port of destination+Insurance Premium

Seller Risks : stop after placing goods on board of Ship in the port of loading

Buyer Costs & Risks : start from goods on board of Ship in the port of loading


There's 10 aspects of incoterms that you can read on incoterms 2000


Thanks

Quoting from [smileplease]:


WHAT IS THE DIFFERENCE BEETWEEN FOB,CFR(C & F) and CIF ? CAN ANYBODY EXPLAIN GIVING AN EXAMPLE PLEASE ?

Quoting from [smileplease]:


WHAT IS THE DIFFERENCE BEETWEEN FOB,CFR(C & F) and CIF ? CAN ANYBODY EXPLAIN GIVING AN EXAMPLE PLEASE ?

Study INCOTERMS 2000 and all becomes clear. INCOTERMS 2000 will find with the help of search google

Quoting from [smileplease]:


WHAT IS THE DIFFERENCE BEETWEEN FOB,CFR(C & F) and CIF ? CAN ANYBODY EXPLAIN GIVING AN EXAMPLE PLEASE ?

Quoting from [smileplease]:


WHAT IS THE DIFFERENCE BEETWEEN FOB,CFR(C & F) and CIF ? CAN ANYBODY EXPLAIN GIVING AN EXAMPLE PLEASE ?

1-FOB (freight on borad) mean you will pay the freight and duty, supplier is responsible for document and till to ship or plan.

2- C&F (carriage and freight) supplier is respobsible for document and for the freight to your nearst city port or airport .

3-CIF ( insurance is added in the C&F)

that i s it