F.O.B. |
Free on board, is used of
a price quoted for goods including the cost of placing them on board ship. Where the goods
have been quoted F.O.B. it is the sellers duty to deliver the goods to the ship at
the port of shipment and to pay all expenses incurred in connection with and to make a
reasonable contract of carriage for their transport to the above. Delivery is completed
once the goods have been put aboard ship. However, it is the duty of the seller to notify
the buyer of the shipment to enable them to arrange insurance, otherwise the goods are at
the sellers risk. |
Ex works |
The price at which the
supplier will supply ex his works. It does not include any cartage or delivery. |
C&F |
Cost and Freight |
C&FC |
Cost, Freight and
Commission |
C.I.F. |
Cost, Insurance and
Freight. A C.I.F. contract is a contract for the sale of goods where the sellers
duties are:
1. To ship at the port of shipment, within the time named in the contact, the goods
of the contract description.
2. To procure on shipment a contract of affreightment under which the goods will be
delivered at the destination contemplated by the contract.
3. To effect, upon the terms current in the trade, an insurance of the goods which will be
available for the benefit of the buyer.
4. To make out an invoice of the goods.
5. To tender to the buyer the bill of lading, the invoice and the policy of insurance.
It is the duty of the buyer to take up these documents and pay for the goods. |
C.I.F.C |
Cost, insurance, freight
and commission |
F.A.S. |
Free alongside ship.
Includes all charges (including wharfage and porterage) up to but not including hoisting
on board. |
F.O.W. |
Free on wharf. Goods
delivered to the wharf. It includes cartage to the wharf but not the payment of wharfage. |
L/C. |
Letter of Credit. |
On Consignment |
Goods shipped with
payment made to the shipper as the goods are sold at destination. The shipper retains
ownership.
(Foreign exchange regulations require payment within six months.) |
Ships Liability |
This starts when the
cargo is on the inboard of the ships rails. It terminates as soon as the cargo is
over the ships rail on discharge. If cargo is damaged in transit from wharf to the
ships rail or vice versa, the ship will normally refuse liability. |