Incoterms for Sea and Inland Waterway Transport

Incoterms for Sea and Inland Waterway Transport Only:

1. FAS – Free Alongside Ship
2. FOB – Free on Board
3. CFR – Cost and Freight
4. CIF – Cost, Insurance, and Freight

FAS – Free Alongside Ship

• The seller delivers when the goods are placed alongside the vessel (e.g., on a quay or a barge) nominated by the buyer at the named port of shipment.
• The risk of loss of or damage to the goods passes when the products are alongside the ship.  The buyer bears all costs from that moment onwards.

CFR – Cost and Freight

• The seller delivers the goods on board the vessel or procures the goods already so delivered.
• The risk of loss of or damage to the goods passes when the products are on board the vessel.
• The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination.

​​FOB – Free On Board

• The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered.
• The buyer becomes responsible for bearing all costs and risks from the moment the goods are on board the vessel, so the buyer will pay for the International transportation, insurance, and any further costs.
• Seller’s costs include delivering the goods to the port of shipment, loading costs onto the vessel, and export duties, taxes, and customs clearance.
• Buyer covers costs including main carriage (freight) costs from the port of loading to the port of destination, unloading costs at the destination port, and import duties, taxes, and customs clearance at the destination country.

CIF – Cost, Insurance and Freight

• The seller delivers the goods on board the vessel or procures the goods already so delivered. The risk of loss of or damage to the goods passes when the products are on the ship.
• The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination.
• The seller also contracts for insurance cover against the buyer’s risk of loss of or damage to the goods during the carriage.
• The buyer should note that under CIF the seller is required to obtain insurance only on minimum cover. Should the buyer wish to have more insurance protection, it will need either to agree as much expressly with the seller or to make its own extra insurance arrangements.