What is FOB and CIF prices?

FOB (Free on Board) and CIF (Cost, Insurance, and Freight) are terms used in International Shipping to define the responsibilities of buyers and sellers. FOB indicates that the seller is responsible for the goods until they are loaded onto the shipping vessel, while the buyer assumes responsibility once the goods are on board. In contrast, CIF includes the cost of the goods, insurance, and freight charges, meaning the seller covers these expenses until the goods reach the buyer's destination port. Essentially, CIF provides a higher level of service and security for the buyer compared to FOB.