1. FAS (Free Alongside Ship - Delivery at Port of Loading)

• Risk Transfer Point: When goods are placed alongside the vessel at the named port (including lighterage)

• Responsibilities:

• Seller: Deliver goods to shipside + handle export clearance

• Buyer: Loading costs + main carriage + marine transport expenses

• Typical Use: Bulk cargo transactions or when buyer arranges loading

2. FOB (Free On Board - Delivery Onboard Vessel)

• Risk Transfer Point: Goods pass ship's rail (practically when loaded into hold)

• Responsibilities:

• Seller: Pre-loading costs + export formalities + clean onboard B/L

• Buyer: Chartering vessel + marine insurance + destination port fees

• Market Insight: Over 80% of China's exports use FOB terms, common when buyer controls freight

3. CFR (Cost and Freight - Seller Pays Main Carriage)

• Risk Transfer Point: Same as FOB (ship's rail at loading port)

• Responsibilities:

• Seller: Covers ocean freight to destination (no insurance)

• Buyer: Must arrange insurance + import clearance

• Critical Note: Seller must promptly send shipping notice for buyer's insurance

4. CIF (Cost, Insurance & Freight - All-inclusive Delivery)

• Risk Transfer Point: Same as FOB (ship's rail)

• Responsibilities:

• Seller: Provides basic marine insurance (FPA by default) + full freight

• Buyer: Bears additional transit risks

• Advantage: Preferred for long-haul shipments with volatile insurance costs

Key Comparison Table

Note: All terms require seller to handle export clearance. Risk of loss transfers to buyer after risk transfer point.