Understanding International trade terms here’s a quick breakdown of the 5 most commonly used terms for

Sea Freight:

🚢 FOB (Free On Board):

Seller’s Cost: Local charges + Loading.

Buyer’s Cost: Sea freight, Insurance, Destination charges.

Risk Transfer: When goods are on board the vessel.

(Buyer have freight forwarding arrange to booking and shipping ）

🚢 CIF (Cost, Insurance & Freight):

Seller’s Cost: Local charges + Loading + Sea freight + Insurance.

Buyer’s Cost: Destination charges.

Risk Transfer: At the port of destination.

( Buyer need to arrange customs clearance, pay destination port fees and duties, and collect the goods at the destination port. ）

📦 For Air/Road/Rail (Any Transport):

EXW (Ex Works): The seller’s obligations are minimal; the buyer bears all risks and costs throughout the transportation process.

✈️ FCA (Free Carrier):

The seller is responsible for delivering the goods to the designated carrier, with a flexible point of risk transfer.

✈️ DDP (Delivered Duty Paid):

The seller takes on ALL risk and cost, including import duty and clearance. High risk, high price.