FOB vs CFR vs CIF
Three common Incoterms that decide who pays for freight and insurance, and where risk transfers.
FOB (Free On Board): the seller delivers the goods on board the vessel at the port of shipment. From that point the buyer pays ocean freight and insurance and carries the risk.
CFR (Cost and Freight): the seller pays the freight to the destination port, but risk still transfers to the buyer once the goods are on board — the buyer arranges insurance.
CIF (Cost, Insurance and Freight): like CFR, but the seller also buys marine insurance to the destination port. A quoted price is only comparable once you know its Incoterm.