What are the freight terms?
Commonly-Used Shipping Terms and Their Implications
| Terms of Sale | Payment of Initial Freight | Assumes transit risk |
|---|---|---|
| FOB Origin, Freight collect | Receiver | Receiver |
| FOB Origin, Freight prepaid and charged back (adds to invoice) | Shipper | Receiver |
| FOB Destination, Freight prepaid and charged back (adds to invoice) | Shipper | Shipper |
What Incoterms can be used for ocean freight?
The most common Incoterms for sea freight transport
- Ex Works (EXW)
- Free On Board (FOB)
- Cost, Insurance & Freight (CIF)
- Delivery Duty Paid (DDP)
How many types of freight terms are there?
There are four major types of freight transportation available for shippers to use in the world of freight shipping.
How many terms are in shipping?
11 Shipment Terms Defined under the Incoterms.
What are the two freight terms?
There are two types of FOB shipment terms: FOB shipping point and FOB destination.
Is FOB only used for sea freight?
FOB only applies to ocean or inland waterway transport. As such, the named place is always a port. It does not apply if the main carriage is via air, ground or rail. This term is commonly used for bulk cargo (such as oil or grain) or freight from Asia.
Which delivery terms can be used only for sea transportation?
FOB – Free On Board The seller must clear the goods for export. This term can only be used for ocean transport.
What is CIF 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 CIF freight terms?
Cost, insurance, and freight (CIF) is an international shipping agreement used when freight is shipped via sea or waterway. Under CIF, the seller is responsible for covering the costs, insurance, and freight of the buyer’s shipment while in transit.
What is FOB term?
Free on Board (FOB) is a shipment term used to indicate whether the seller or the buyer is liable for goods that are damaged or destroyed during shipping. “FOB destination” means the seller retains the risk of loss until the goods reach the buyer.
Is there a glossary for freight terms?
There are so many freight-related terms that sometimes even the pros are left scratching their heads. Our exhaustive glossary fleshes out freight, clarifies cargo, and demystifies the documents with easy-to-understand explanations of the words and acronyms you will encounter most.
What are Incoterms in freight?
Freight incoterms (International Commercial Terms) are the standard contract term used in sales contracts with importing/exporting to define responsibility and liability for shipment of the goods.
What are the terms of commercial cargo?
COMMERCIAL TERMS (a) for full container loads (FCL), standard containers and dry cargo, with a total value not exceeding US$1,000,000 per Transport Document; and (b) for less than container loads (LCL), stackable general cargo, with a total value not exceeding US$150,000 per Transport Document.
What is the meaning of cost and freight?
Cost and Freight. It is a term of trading in which the buyer of the goods pays an amount which covers the cost of the goods plus the cost of transporting the goods from origin to the port of discharge or final destination.