What is FOB and CIF? Difference? FOB, CIF, Free On Board, Cost, Insurance Freight, transportation costs, price invoiced, goods, board, insurance

FOB and CIF are the most two popular price terms of INCO TERMS, defined by ICC to harmonize the possible dispute of arising form the international trade practice.

FOB (Free On Board): Term of sale under which the price invoiced or quoted by a seller includes all charges up to placing the goods on board a ship at the port of departure specified by the buyer. Also called collect freight, freight collect, or freight forward

CIF (Cost, Insurance & Freight): Term of sale signifying that the price invoiced or quoted by a seller includes insurance and all other charges up to the named port of destination. In comparison, carriage and insurance paid to (CIP) terms include insurance and all charges up to a named place in the country of destination (usually the buyer's warehouse). See also cost and freight (C&F, or CFR). The difference between CIF and CFR is the insurance during the transportation

The major difference between CIF and FOB is of the transportation costs and insurance during it.