What is the FOB, CFR/CNF, CIF Term?

Many new customers or new importers ask BORTE.com.cn what’s your meaning of the term FOB Shanghai or FOB Ningbo.  So We'd like to explain clearly here to our customers.

There are many international business term such as Ex-work, FCA, FOB, CNF, CIF, DDU, DDP. But the most popular term is FOB, CNF, CIF. So BORTE would like to explain the three terms to you for better understanding the international business:

FOB(Origin Port in China) is short of “Free On Board”, meaning that the seller/exporter only afford the transportation and risk to the China port. The buyer/importer afford the transportation/risk from the China port to the destination place.

C&F/CNF(Destination port) is short of”Cost and Freight”, meaning that the seller/exporter will afford the transportation to the destination port, but don’t afford the risk from the China port to destination port.If you want to avoid the risk, then you can cover the insurance or you can ask for the term CIF.

CIF(Destination port) is short of”Cost, Insurance and Freight”, meaning that the seller/exporter will afford the transportation and risk to the destination port.

If you're still confused with these terms, please contact your service specialist or your freight agent ,he or she will explain to you clearly.