in the world of import/export business, what does FOB and CFR mean?
- Tara PLv 51 decade agoFavorite Answer
FOB means "Free on Board" it means once the goods pass the ships rail at the port of the seller, the buyer bears the risk off loss. Thus, if the ship goes down in transit, buyer takes the loss.
CFR means either cost and freight or carriage and freight
(... named port of destination) and requires the seller to pay the costs and freight necessary to bring the goods to the named destination, but the risk of loss or damage to the goods, as well as any cost increases, are transferred from the seller to the buyer when the goods pass the ship's rail in the port of shipment. Insurance is the buyer's responsibility."
- Jonny BLv 51 decade ago
FOB means "free on board" and is a term that means the fright will be paid to a certain point.. For instance FOB destination means freight is paid by the shipper to the destiation. CFR i dont know
- Anonymous1 decade ago
FOB means "Free On Board. It's a freight term. If you buy something and it is delivered freight prepaid, it means FOB destination. If it's freight collect, it's FOB shipping point. Means you pay the freight upon delivery.
Can't remember what CFR stands for. May be "credit -----"?
- Geoff SLv 61 decade ago
FOB = Free On Board which means the exporter pays for everything to get it on the boat/plane/etc. and you pay the shipping.
CFR = Cost and Freight which means that the seller pays for transportation to the port of shipment, loading and freight. The buyer pays for the insurance and transportation of the goods from the port of destination to his factory.
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