What is the opposite of FOB?
Under a CIF agreement, the seller assumes the costs and risks associated with transport until delivery, which is when the buyer assumes responsibility. With a FOB agreement, the seller transfers all of the risk and costs to the buyer once the shipment is loaded onto the shipping vessel.
What is the opposite of FOB in shipping?
Freight collect means the person receiving the shipment is responsible for all freight charges. They also assume all risks and are responsible for filing claims in the case of loss or damage. Freight prepaid is the opposite.
What is the main difference between FOB and CIF?
The major difference between FOB and CIF is when liability and ownership transfer. In most cases of FOB, liability and title possession shift when the shipment leaves the point of origin. With CIF, responsibility transfers to the buyer when the goods reach the point of destination.
What does CIF mean in shipping terms?
Under CIF (short for “Cost, Insurance and Freight”), the seller delivers the goods, cleared for export, onboard the vessel at the port of shipment, pays for the transport of the goods to the port of destination, and also obtains and pays for minimum insurance coverage on the goods through their journey to the named ...
What is difference between FOB and FCA?
FCA considers goods delivered once seller places goods on transport arranged by buyer. FOB considers goods delivered once seller places goods on board specified vessel. Arrangements for transport, transport costs, and insurance costs are the responsibility of the buyer.
What is FOB - Free On Board?
What is the difference between FOB and DDP?
FOB term is when the goods pass the ship's rail, at the port of export (origin), and DDP term is when the goods are placed at the disposal of the buyer. Gap responsibilities between FOB and DDP term consists of: carriage charges, insurance, destination terminal charges, delivery to destination, and import duty & taxes.
What does FCA stand for shipping?
What Is Free Carrier (FCA)? The free carrier is a trade term dictating that a seller of goods is responsible for the delivery of those goods to a destination specified by the buyer.
What does DAP mean in shipping?
What are Delivered at Place (DAP) incoterms? This is an international trade term (an Incoterm) that describes a type of arrangement between buyer and seller, in which the seller agrees to pay all the costs of moving sold goods to a specific location.
What does DDP mean?
Under the Delivered Duty Paid (DDP) Incoterm rules, the seller assumes all responsibilities and costs for delivering the goods to the named place of destination. The seller must pay both export and import formalities, fees, duties and taxes.
What does DDU mean in shipping terms?
Key Takeaways. Delivered Duty Unpaid (DDU) is an international trade term meaning the seller is responsible for ensuring goods arrive safely to a destination; the buyer is responsible for import duties. By contrast, Delivered Duty Paid (DDP) indicates that the seller must cover duties, import clearance, and any taxes.
What is CIF and CFR?
Cost and freight (CFR) is a trade term that requires the seller to transport goods by sea to a required port. Cost, insurance, and freight (CIF) is what a seller pays to cover the cost of shipping, as well as the insurance to protect against the potential damage of loss to a buyer's order.
What is difference between CIF and DDP?
CIF (Cost, Insurance, and Freight) terms mean that the seller merely assumes responsibility for said goods until they reach the port of destination. DDP (Delivered Duty Paid) refers to the seller paying the duties and taxes of the shipment. These various acronyms are known as INCO terms.
What are CIP terms?
CIP (Carriage And Insurance Paid To) means that the seller is responsible for delivery, delivery costs, and insurance costs of the goods until they are transferred to the first carrier tasked with transporting the goods.
What is FOB and EXW?
What Do EXW and FOB Stand for? EXW stands for Ex Works, an incoterm whereby the buyer of a shipped product pays for the goods when they are delivered to a specified location. FOB, or Free on Board, instead shifts the responsibility of the goods to the buyer as soon as they are loaded onboard the ship.
What does EXW mean in shipping terms?
Key Takeaways. Ex works (EXW) is a shipping arrangement in which a seller makes a product available at a specific location, but the buyer has to pay the transport costs.
Is CIF or FOB better?
Buyers generally consider FOB agreements to be cheaper and more cost-effective. That's because they have more control over choosing shippers and insurance limits. CIF contracts, on the other hand, can be more expensive. Since the seller has more control, they may opt for a preferred shipper who may be more costly.
What is CFR in shipping terms?
Under CFR terms (short for “Cost and Freight”), the seller is required to clear the goods for export, deliver them onboard the ship at the port of departure, and pay for transport of the goods to the named port of destination.
What is EXW price?
EXW stands for Ex Works where the supplier is only responsible for making the products ready for delivery from their location. Normally this is the factory. And the buyer (you) are responsible for all transportation costs the rest of the way. In other words to ship it from the factory to your destination.
Is DAP the same as DDU?
DDU, which is also known as DAP (Duties At Place), means the buyer has to pay for all import customs clearance, duties, and taxes upon delivery. Basically, DDU/DAP means that the buyer has to pay for all the requisite import fees when the import arrives at their address.
What is CPT in shipping?
Carriage Paid To (CPT) rules require the seller to clear the goods and arrange carriage (by one or more transport modes) to the named place of destination. The seller does not need to obtain or pay for insurance.
What is DDP and DAP shipping?
DDP: Import officials verify all taxes and duties have been paid and release the package for delivery. DAP: Import officials assess import taxes and duties, then the carrier notifies the customer their shipment is available upon payment.
Which is better FCA or EXW?
Of all the rules, the EXW term places the least amount of risk on the seller, leaving the buyer with the majority of the responsibility. FCA determines that the risk transfer occurs when the seller loads the goods on the buyer's transport or when the seller delivers the goods to a named place of delivery.
What is FCA and DAP?
As per International commercial Terms 2010, FCA means Free Carrier (to named destination). DAP means Delivered at Place (place of destination mentioned.
What is the difference between DDP and FCA?
As per Inco terms, DDP means Delivered Duty Paid (named destination place mentioned). FCA means, Free Carrier ( up to the destination location mentioned).
Which is better EXW or DDP?
EXW or DDP which one to choose? As we said when explaining FOB and CFR, choosing one Incoterm or aonther depends on the part you play in the commercial transaction. When importing it is best to choose EXW as the buyer has more control of the operation. And so when exporting it's best to choose DDP.