Incoterms Rules for Sea and Inland Waterway Transport

The ICC has specific Incoterms rules for inland waterway and sea transport, such as Cost, Insurance, and Freight (CIF) and Free on Board (FOB). The Incoterms for sea and inland waterway transport are:

• FAS: Free Alongside Ship
• FOB: Free on Board
• CFR: Cost and Freight
• CIF: Cost, Insurance, and Freight

Free on Board (FOB) shipment terms, for example, indicate the seller delivers the goods on board a designated vessel named by the buyer. The buyer or seller may assume all the risk and transportation costs depending on whether the goods are sold under the FOB shipping point or FOB destination point.

Cost, Insurance, and Freight (CIF) terms indicate the seller must deliver the goods to a designated port and load them on a specified vessel, assuming responsibility for paying all transportation, insurance, and loading costs. After that, the buyer assumes the cost and risk associated with transporting the cargo from the designated port to its warehouse or business.

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