Selecting the right Incoterm (FOB, CFR, or CIF) and origin port (Tuticorin, Chennai, Nhava Sheva) directly impacts landed product profitability and risk allocation for international buyers.
Incoterms Explained
- FOB (Free on Board): Seller delivers goods on board the vessel nominated by the buyer at the Indian origin port. Buyer handles ocean freight and insurance.
- CFR (Cost and Freight): Seller pays all costs and freight necessary to bring the goods to the named destination port.
- CIF (Cost, Insurance and Freight): Seller arranges freight and minimum marine cargo insurance coverage up to the destination port.