What is the difference between FOB and CIF?
International Shipping Logistics Company in UAE Whether you’re selling or buying goods, understanding the different types of shipping contracts—like FOB and CIF —will help you better understand your responsibilities throughout a transaction. This in turn will help you reduce risk and lead to a smoother supply chain. So what is the difference between FOB and CIF? And how does it affect the import and export process? Free on board (FOB) and cost, insurance, and freight (CIF) are two important rules governing domestic and international trade. These contracts determine ownership and liability from the port of origin to the destination. FOB and CIF are both Incoterms—rules for cargo transport that the International Chamber of Commerce maintains. Incoterms determine each party’s duties and dictate the transfer of ownership during a transaction. It is vital that companies shipping or receiving goods internationally understand the important implications FOB and CIF have on shipping...