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in the world of import/export business, what does FOB and CFR mean?


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Old 06-15-2008, 01:56 AM
import import is offline
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Default in the world of import/export business, what does FOB and CFR mean?

in the world of import/export business, what does FOB and CFR mean?
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Old 06-15-2008, 01:56 AM
Carl Carl is offline
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Default in the world of import/export business, what does FOB and CFR mean?

FOB = Free On Board which means the exporter pays for everything to get it on the boat/plane/etc. and you pay the shipping.
http://en.wikipedia.org/wiki/Free_On_Board

CFR = Cost and Freight which means that the seller pays for transportation to the port of shipment, loading and freight. The buyer pays for the insurance and transportation of the goods from the port of destination to his factory.
http://en.wikipedia.org/wiki/Cost_and_Freight
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Old 06-15-2008, 01:56 AM
lead lead is offline
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Default in the world of import/export business, what does FOB and CFR mean?

FOB means "free on board" and is a term that means the fright will be paid to a certain point.. For instance FOB destination means freight is paid by the shipper to the destiation. CFR i dont know
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Old 06-15-2008, 01:56 AM
India India is offline
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Default in the world of import/export business, what does FOB and CFR mean?

free on board= FOB
cost and freight= CFR
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Old 06-15-2008, 01:56 AM
India India is offline
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Default in the world of import/export business, what does FOB and CFR mean?

FOB means "Free on Board" it means once the goods pass the ships rail at the port of the seller, the buyer bears the risk off loss. Thus, if the ship goes down in transit, buyer takes the loss.

CFR means either cost and freight or carriage and freight
(... named port of destination) and requires the seller to pay the costs and freight necessary to bring the goods to the named destination, but the risk of loss or damage to the goods, as well as any cost increases, are transferred from the seller to the buyer when the goods pass the ship's rail in the port of shipment. Insurance is the buyer's responsibility."
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