FOB and CFR under Inco terms 2020

Difference between CFR and FOB  as per Inco terms rules 2020

Cost and Freight at named location Vs. Free On Board at a named location

Under FOB delivery terms, the seller completes his obligation of costs and risks under movement of goods and passes to buyer when the goods are placed to the Vessel (on board the ship).  But under CFR delivery rules, the seller transfers costs of movement of goods to the buyer when the goods arrived at buyer’s side.

The costs covered by the seller under CFR terms passes from seller to buyer when the goods arrived at named destination at buyer’s side.  But the seller under FOB is responsible to bear the cost till the goods gone onboard the vessel nominated by the buyer.

The freight payment against main carriage under CFR is liable to pay by the seller.  But under FOB, the main carriage is undertaken by the buyer.

The buyer has control over deciding ocean freight, as main carriage is arranged by him and he holds strength in tracking shipment under FOB delivery terms.  But under CFR, the buyer has to depend upon the seller for getting export shipment details with shipping tracking, as the seller has control over freight under main carriage.

 Detailed posts about CFR and FOB are explained easily with simple language in this website, you may click below to read those.

FOB  Free On Board

CFR  Cost and Freight

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