What is FOB CIF and CNF?
What does it mean to ship Freight on Board (FOB) as opposed to Cost Insurance and Freight (CIF) or just Cost and Freight (CNF).
CIF means they will pay for the cost, the insurance and the freight, where CNF means the consignee is responsible for the insurance only..
How are CIF charges calculated?
In order to find CIF value, the freight and insurance cost are to be added. 20% of FOB value is taken as freight. Means USD 200.00. Insurance is calculated as 1.125% – USD 13.00 (rounded off).
What does FOB stand for?
Free On Board (FOB) is a shipment term used to indicate whether the seller or the buyer is liable for goods that are damaged or destroyed during shipping.
How is FOB value calculated?
fob = (cost of freight l) (-) present value of sold the goods., which is convert after in free foreign currency.
Which is best FOB or CIF?
With CIF, responsibility transfers to the buyer when the goods reach the point of destination. In most cases, we recommend FOB for buyers and CIF for sellers. FOB saves buyers money and provides control, but CIF helps sellers have a higher profit.
When should I use CIF?
CIF applies to ocean or inland waterway transport only. It is commonly used for bulk cargo, oversized or overweight shipments. If the freight is containerized and delivered only to the terminal, use CIP instead.
What is the advantage to using CIF costing terms?
Advantages and Disadvantages of CIF – Cost insurance and Freight. The advantage to the seller is that it can often obtain cheap insurance and then build a larger amount into its selling price. The advantage to the buyer is that it does not have to worry about declaring the shipment to its own insurer.
What is FOB price?
Free On Board, in short FOB, is a term frequently used in shipping terms where the seller quotes a price including the cost of delivering goods to the nearest port. … In simple terms, FOB price means the buyer has to bear the shipping costs completely.
What does FOB point mean?
Free on BoardFOB shipping point, also known as FOB origin, indicates that the title and responsibility of goods transfer from the seller to the buyer when the goods are placed on a delivery vehicle.