FOB vs CIF vs CFR: Incoterms Explained for Buyers

Incoterms define who is responsible for cost and risk at each stage of an international sale. For sea shipments from India, three terms come up most often: FOB, CFR and CIF. Here's how they differ.

FOB — Free On Board

The seller delivers the goods on board the vessel at the origin port. From that point, the cost and risk of the main carriage and insurance are the buyer's. FOB gives buyers the most control over freight and insurance choices.

CFR — Cost & Freight

The seller covers the cost of carriage to the destination port, but the risk passes to the buyer once goods are on board at origin. Insurance is the buyer's responsibility under CFR.

CIF — Cost, Insurance & Freight

Like CFR, but the seller also arranges minimum insurance to the destination port. CIF is convenient for buyers who prefer the origin side to handle freight and basic insurance.

A quick rule of thumb

• Want maximum control over freight & insurance → FOB
• Want freight handled at origin, insurance yourself → CFR
• Want freight and basic insurance handled at origin → CIF

Infinity Exports provides clear guidance on the Incoterm that fits your trade lane and coordinates the requirement accordingly. Submit your requirement for a tailored, itemised quote.