Topic
60 articles
The CIP named place sets where seller-paid carriage and insurance end. Name it by facility and point, name the delivery point separately, and keep the same name on every document.
CIP mistakes cost importers through the insurance policy, not the freight rate: wrong clause, sum insured below 110%, unnamed handover point, cover ending early, and a claim filed with the wrong party.
CIF mistakes cost importers after loading, not before: wrong port, minimum Clause (C) cover, duty left to the buyer, and charges outside the freight price. Seven mistakes, with the fix for each.
CFR cannot be used for air freight: it is a sea and inland waterway rule whose delivery point is on board a vessel. Use FCA, CPT or CIP for air cargo, with the named place and Incoterms 2020 in full.
CFR suits bulk sea shipments where the buyer insures the voyage and the seller books freight. It fits badly for containers, air freight, and buyers who need seller-bought insurance.
CFR documents checklist for shipments from Bangladesh: the freight-paid bill of lading, export declaration, invoice, packing list and origin proof, split by seller and buyer, with timing and fixes.
Under CFR, risk passes to the buyer when goods are loaded on board at the port of shipment, while the seller still pays ocean freight to the destination port. This guide follows the timeline, a tea shipment from Chattogram to Hamburg, and the claim scenarios that decide who pays for damage at sea.
A CFR price covers the goods and the seller costs up to loading on board, plus ocean freight to the destination port, but no insurance. This guide breaks down each included and excluded line, with a labelled example, so you can compare CFR quotes on the same basis.
Under FOB, risk passes when goods are on board the vessel, and neither party must insure. This guide shows buyers how to arrange cover from that point, set the insured value, and choose a cargo clause.
The fob advantages and disadvantages come down to control: FOB suits sea freight buyers who can arrange freight and insurance, and fits poorly for containers, air freight and first-time importers without freight support.
FOB shipping from Bangladesh means the seller loads your goods on board the vessel you nominate at Chattogram or Mongla. This guide follows that loading sequence, who books what, and the mistakes that leave cargo waiting at the port.
When risk transfers under FOB, and when it can transfer early: the on-board moment, the factory-to-vessel timeline, cost versus risk, and three claim scenarios for importers.
