What is the difference in FOB,FOR,CIF,CIP, EXWORK?

Question

What is the difference in FOB,FOR,CIF,CIP, EXWORK?

Answer 1

those are all terms related to who, what where is paying for freight , insurance, liability on a shipment.

for example, FOB stands for Free on Board.  Once it is loaded on the truck ownership and liability pass to the buyer.

If the truck crashes 1 mile away,  the buyer still has to pay for the goods.

Answer 2

CIP is going to:CARRIAGE AND INSURANCE PAID TO, that's to say you have to pay  for insurance, then any way or any accident will happen to your goods, this will be the seller responsibility(it is the most common and comfortable delivery way).

FOB: Free On Board: the seller sell you the materials from factory and then he is careless about the transportation to you, you will pay for it and the insurance will be on your risk.

EXW: it means the source of the products, for example the agent in UAE but the materials in China, so the when he give you the price, it will be the price in China and then you have to care about transportation and also insurance.

FOR: there is no term like this.

I hope my answer can help you

Adnan Abo Alniaj

Abu Dhabi- UAE