How BRF Logistics Supports Your Global Trade
In international trade, choosing the right Incoterms® 2020 is critical. It determines who pays, who bears the risk, et who arranges logistics. Among the most commonly used terms are FOB, CNF, and CIF—especially in ocean freight.
Below is a simple guide to help you understand the differences and how BRF Logistics can support your shipments under each term.
1. FOB – Free On Board (Named Port of Shipment)
What it means
Under FOB, the seller is responsible for delivering the goods on board the vessel at the port of origin. Once the cargo is loaded, risk and responsibility transfer to the buyer.
Cost & Responsibility
- Seller: export customs clearance, inland transport to port, loading
- Buyer: ocean freight, insurance, destination charges, import clearance
When FOB is suitable
- Buyers want full control over freight and insurance
- Buyers have strong logistics partners or global shipping contracts
BRF Logistics Services under FOB
- Origin port operations and export clearance
- Ocean freight booking on behalf of the buyer
- End-to-end logistics coordination upon request
2. CNF (CFR) – Cost and Freight (Named Port of Destination)
What it means
Under CNF, the seller pays for the ocean freight to the destination port, but risk transfers to the buyer once the goods are loaded on board at the origin port.
Important note:
CNF does not include insurance.
Cost & Responsibility
- Seller: export clearance + ocean freight
- Buyer: cargo insurance, destination charges, import clearance
When CNF is suitable
- Sellers want to offer competitive freight rates
- Buyers prefer to arrange insurance themselves
BRF Logistics Services under CNF
- International ocean freight arrangement
- Flexible carrier selection and route optimization
- Destination port handling and onward delivery
3. CIF – Cost, Insurance and Freight (Named Port of Destination)
What it means
CIF is similar to CNF, but the seller also provides minimum cargo insurance. Risk still transfers at the port of shipment, despite the seller paying for freight and insurance.
Cost & Responsibility
- Seller: export clearance, ocean freight, insurance
- Buyer: destination charges, import clearance, inland delivery
When CIF is suitable
- Buyers want simpler purchasing with fewer arrangements
- New importers seeking reduced operational complexity
BRF Logistics Services under CIF
- Ocean freight + cargo insurance coordination
- Insurance coverage compliant with Incoterms® 2020
- Destination clearance support and last-mile delivery
CNF vs CIF vs FOB: Quick Comparison
| Terme | Frais de transport pris en charge par | Assurance | Point de transfert des risques |
|---|---|---|---|
| FOB | Acheteur | Acheteur | On board at origin |
| CNF | Vendeur | Acheteur | On board at origin |
| CIF | Vendeur | Seller (minimum) | On board at origin |
1. What do CNF, CIF, and FOB mean in international shipping terms?
FOB (Free On Board): The seller is responsible for delivering the goods to the port of shipment and loading them onto the vessel. After that, the buyer assumes all costs and risks.
CIF (Cost, Insurance, and Freight): The seller covers the cost of goods, ocean freight, and insurance until the destination port.
CNF (Cost and Freight): Similar to CIF, but the seller does not include insurance—only cost and sea freight are covered.
2. What is the main difference between CNF and CIF?
The key difference is insurance coverage:
- CNF: Insurance is NOT included
- CIF: Insurance is included and arranged by the seller
CIF provides more protection for the buyer during transit.
3. What costs does the buyer pay under FOB terms?
Under FOB terms, the buyer is responsible for:
- International ocean freight
- Marine insurance (optional but recommended)
- Destination port charges
- Customs clearance and local delivery
4. Which Incoterm is better for buyers?
- FOB: Best for buyers who want to control shipping arrangements and reduce costs
- CIF / CNF: Better for buyers who prefer the seller to handle shipping
- CIF: Best for buyers who want added insurance protection
5. Why do FOB, CNF, and CIF prices differ for the same product?
The price difference is due to included services:
- FOB: Only covers goods + delivery to port + loading
- CNF: Adds ocean freight
- CIF: Adds ocean freight + insurance
Therefore, CIF is usually the highest price, and FOB is the lowest.
Pourquoi choisir BRF Logistics ?
No matter which Incoterm you use, BRF Logistics can fully support your shipment:
- 🌍 Global ocean & multimodal freight solutions
- 📦 Export & import customs clearance
- 🚢 Flexible Incoterm-based service models
- 📊 Transparent cost control and risk management
- 🤝 One-stop logistics partner from origin to destination
From FOB to CIF, from port to door—BRF Logistics delivers with confidence.
