NM Jindal Global
Why it matters
Incoterms are standard terms that say where costs and risk move from seller to buyer. A clear choice avoids disputes over damage, delay and charges.
The common three
Under FOB the seller loads the goods on the vessel at the origin port. Under CFR the seller also pays freight to the destination port. Under CIF the seller adds minimum insurance to CFR.
Which to choose
If you have strong freight rates or your own forwarder, FOB gives control. If you prefer a single landed quote, CFR or CIF is simpler. Check the rules in your destination country too.
Put it in writing
State the Incoterm and its version, together with the named port, in the contract and on the invoice.
General guidance only. Requirements vary by product and country, so confirm them for each shipment.
