What is CIF (Shipping) ?


In addition to FOB, CIF is also seen a lot in Incoterms.
FOB is Free On Board(see What is FOB?)means all risk/cost before shipment loaded to the vessel belongs to the seller.

CIF is Cost, Insurance & Freight, means insurance and freight charge happened before the vessel is arrived at destination port belongs to the seller.  However, seller only covers the freight cost and insurance cost.  The risk after loaded onto the vessel still belong to buyer.

However, CIF doesn’t authorize the transfer of shipment owner right.  The payment term will define the owner right.  That means only when buyer followed the payment term and make the payment on time, the shipment owner right will then be transferred.

FOB v.s. CIF
If a shipment is traveling from Taiwan to England based on CIF, what’s the additional charge versus FOB term?  Please see followed:

1. Ocean Freight
2. Bunker Adjustment Factor
3. Terminal Handling Charge
4. Document Charge
5. United Kingdom Surcharge

So if the seller quote FOB term than the price didn’t included above price.  The buyer needs to take above cost into consideration. 

For more question about shipping please feel free to contact us!

www.hsiehmetal.com
HSIEH Metal was founded in 1985 and has been specialized in Metal Products Manufacturing and Tooling.
Metal stamping parts | Casting parts | Forging parts.
Our factory is located in New Taipei City and China.

Comments

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