FOB: Free On Board

Under FOB, the seller delivers the cargo on board the buyer's vessel at the load port. From that point the buyer is responsible for freight, insurance and the risk of loss.

• Buyer arranges the vessel and marine insurance
• Risk passes when the cargo is loaded on board
• Best for buyers with their own chartering capability or freight contracts

CIF: Cost, Insurance and Freight

Under CIF, the seller arranges and pays for the vessel and marine insurance to the named discharge port. Risk still passes to the buyer at loading, but the seller manages the voyage.

• Seller arranges the vessel, freight and insurance
• Risk passes at loading, as under FOB
• Best for buyers who want a delivered price and one counterparty for the voyage

Which should you choose?

If you have reliable access to tonnage, FOB can give you more control over freight cost. If you prefer simplicity and a single point of contact, CIF lets Sky Rebel manage the voyage for you.

Terms are defined in the contract. Always read the delivery clause, not just the abbreviation.