Trade Terms
CIF vs FOB Explained for Petroleum Buyers
PetroIntermediation TeamTrade Terms
FOB (Free on Board): seller delivers to vessel at load port. Buyer pays freight, insurance, and discharge. Risk passes at the ship's rail.
CIF (Cost, Insurance, Freight): seller pays freight and marine insurance to destination port. Risk still passes at load port — only cost is included.
When to choose which
- Choose FOB if you have your own charterer or freight is volatile in your favor.
- Choose CIF for simplicity, especially for first-time buyers.
Compare offers in both formats on petromarketplace.com.
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