FCA (Free Carrier)

Dictionary

The international trade term CIP (Carriage and Insurance Paid to) is part of the Incoterms and describes the case where the seller assumes the costs and minimum insurance of the freight up to the destination, but not the risk of loss or damage once it has been handed over to the first carrier. Overall, CIP is very similar to CPT, with the difference of additional insurance coverage. CIP can be applied to all types of transportation.

Dictionary

FOB (Free on Board) is one of the clauses defined in the Incoterms for recording responsibilities for buyers and sellers in the transportation of goods. This clause describes that the seller fulfills his delivery obligation as soon as the goods have been loaded onto the vessel designated by the buyer. After loading onto the selected vessel, the buyer bears all further costs and risks, including freight, insurance and unloading. FOB is used exclusively in shipping and facilitates the drafting of contracts for delivery.

Dictionary

CFR (Cost and Freight) is an international trade clause and part of the Incoterms. It is very similar to the CIF clause, but does not include insurance cover. This means that, as with CIF, the seller bears the costs of loading and transportation of the freight to the port of destination, but insurance cover for the risk of loss or damage must be assumed by the buyer from the time of loading. CFR is used exclusively in maritime shipping and is particularly interesting for buyers who organize the insurance cover themselves, while other costs are covered up to the port of destination.