Explain these commonly used shipping terms: F.O.B., F.A.S., C.I.F., and C.&F.
What will be an ideal response?
"F.O.B." means "free on board." If a shipment sent "F.O.B." followed by the point of shipment, the seller is required to arrange to ship the goods and put the goods in the carrier's possession. The buyer bears the shipping expense and risk of loss while the goods are in transit.
"F.A.S." means "free alongside ship." If a shipment sent "F.A.S." followed by the port of shipment or "F.A.S." followed by the name of a vessel and the port of shipment, the seller is required to deliver and tender the goods alongside the named vessel or on the dock designated and provided by the buyer. The seller bears the expense and risk of loss until this is done. The buyer bears shipping costs and the risk of loss during transport.
"C.I.F." means "cost, insurance, and freight." This is a pricing term that means that the price includes the cost of the goods plus the costs of insurance and freight.
"C.&F." means "cost and freight." This is a pricing term that means that the price includes the cost of the goods and the cost of freight. For both C.I.F. and C.&F. the seller must, at his or her own expense and risk, put the goods into the possession of a carrier. The buyer bears the risk of loss during transportation.
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