MARKET INSIGHTS

When products are exported through maritime transportation, there are some international commerce terms that the two sides may choose to add to their contracts. These terms dictate which side is liable for the safety and the logistical procedures regarding the traded products, as well as for all costs that come with them, at each point in the supply chain. Two of the most widely used terms as such are CIF (which stands for “Cost, Insurance and Freight”) and FOB (“Free on Transportation”).