Free on Board (FOB)
The goods are placed on board a ship at the seller’s cost. The risk of loss and damage is transferred to the buyer when the goods pass the ship’s rail.
Cost and Freight (C&F)
The seller must pay the cost and freight to bring the goods to named destination, but the risk of loss or damage is transferred to the buyer when goods pass the ship’s rails.
Cost, Insurance & Freight
The seller must pay the cost, insurance and freight to bring the goods to named destination. The seller has to procure the insurance against the risk of loss or damage.
Freight Carriage Paid
The seller pays the freight for the carriage of goods to the named destination. However the risk of loss or damage is transferred to the buyer when good have been delivered into the custody of the first carrier.
Freight Carriage & Insurance
In addition to cost and freight the seller must pay for the insurance to bring the goods to the named destination. The seller has to procure insurance against the risk of loss and damage.
Free Alongside Ship
The seller’s obligations are fulfilled when the goods are placed alongside the ship on the quay. The buyer has to bear the cost and risks form that moment including clearing the goods for export.
Ex-Ship
The seller has to make the goods available to the buyer on board the ship at the destination, bearing full cost and risk of bringing there.
Ex-Quay
The seller makes the goods available to the buyer on the quay (wharf) at the destination, bearing full cost and risk of bringing the goods there.
FOB Airport
The seller fulfills his obligation by delivering the goods to the air carrier at the airport. The risk of loss and damage is then transferred to the buyer.
FREE ON RAIL/TRUCK/CARRIER
These terms have similar implications as FOB, except that these are used with rail or truck. The term has been designed to meet the requirements of modern day transport as container carried by trailer or ferries. The seller fulfills his obligations when he delivers the goods into the custody of the carrier at the named point. At that time the risk of loss and damage is transferred to the buyer.
