Incoterms & Logistics

Glossary

FOBFree On Board

Free On Board — seller delivers goods on board the vessel at the named port.

Risk transfer:At ship's rail at port of loading

Buyer covers:Freight, insurance, import

CIFCost, Insurance & Freight

Cost Insurance and Freight — seller pays freight and insurance to destination port.

Risk transfer:At destination port

Buyer covers:Import duties only

CFRCost and Freight

Cost and Freight — seller pays freight to destination port; buyer covers insurance.

Risk transfer:At destination port

Buyer covers:Insurance, import duties

EXWEx Works

Ex Works — buyer collects from seller's premises; buyer bears all costs and risks.

Risk transfer:At seller's premises

Buyer covers:All costs and risks