CIF (Cost, Insurance, and Freight)
Responsibility: The seller is responsible for the cost of shipping, insurance, and freight until the goods reach the destination port.
Risk Transfer: The risk transfers from the seller to the buyer once the goods are loaded onto the vessel at the port of origin.
Cost: Generally more expensive because the seller covers more costs, including insurance.
FOB (Freight On Board)
Responsibility: The buyer is responsible for the cost of shipping and insurance from the moment the goods are loaded onto the vessel at the port of origin.
Risk Transfer: The risk transfers from the seller to the buyer once the goods are loaded onto the vessel.
Cost: Typically less expensive as the buyer has more control over shipping and insurance arrangements.
In summary, CIF places more responsibility on the seller until the goods reach the destination port, while FOB shifts responsibility to the buyer once the goods are on board the vessel at the port of origin.