Xinxiang Filter

The core differences between FOB and CIF lie in the seller’s responsibilities, expense liabilities and the timing of risk transfer.

FOB stands for Free On Board, also known as the price on board the vessel.

CIF stands for Cost, Insurance and Freight, meaning the cost of goods plus insurance premium and ocean freight (delivered to destination port).

Detailed Comparison (SEO trade keyword version, for company website)

Definition & Full Name

FOB (Free On Board): On-board delivery price at the loading port

CIF (Cost, Insurance and Freight): Goods cost + marine insurance + ocean freight to destination port

Cost Bearing

FOB: Seller covers goods cost + domestic charges up to loading on vessel; sea freight and cargo insurance are borne by the buyer.

CIF: Seller pays goods cost, all origin domestic fees, ocean freight and marine insurance till the destination port.

Risk Transfer Point (Critical Distinction)

FOB: Risk transfers from seller to buyer the moment goods pass the ship’s rail / are loaded onto the vessel at the port of shipment.

CIF: Risk transfer timing is identical to FOB — risks shift to buyer once goods are loaded on board at loading port; the seller only pre-pays freight and insurance for the buyer’s benefit.

Applicable Transport Mode

Both terms apply exclusively to sea or inland waterway transport.