FOB and CIF are not just three letters on an enquiry. Each one changes who arranges the ship, who pays the freight, and how risk is described. This is a plain-language overview, not legal advice.
FOB in plain English
FOB, Free On Board, is an Incoterms rule for sea or inland waterway transport. The seller delivers when the goods are on board the vessel nominated by the buyer at the named port of shipment. The buyer usually arranges the main carriage from there. “FOB” without a named loading port does not tell a supply team where the seller’s delivery point is.
CIF in plain English
CIF, Cost, Insurance and Freight, is also a waterborne rule. The seller arranges carriage to the named destination port and procures insurance for the buyer’s risk during that carriage, on the cover the chosen Incoterms edition requires. A point buyers often miss is that risk can still pass at loading, even though the seller pays freight and insurance to the destination port.
What to name in the enquiry
State the Incoterm, the named port, and the edition the parties expect to use, often Incoterms 2020 unless the contract says otherwise. For CIF, say the destination port. For FOB, say the loading port if you know it, or say that the loading place is still to be agreed. Quantity, product and specification still have to be clear. Freight ideas and insurance wishes are not a price.
Read the comparison on the supply terms page, including CFR, which is close to CIF but does not include the seller arranging insurance. To have a requirement reviewed, submit a purchase request.