Incoterms® 2020 rules allocate delivery, cost and risk responsibilities between seller and buyer; they do not replace the sale contract. Under FOB, the seller delivers when the goods are onboard the buyer-nominated vessel at the named port of shipment. Under CFR and CIF, the seller contracts and pays for carriage to the named destination, but risk still transfers when the goods are onboard at shipment. CIF also requires the seller to arrange the specified insurance cover; CFR does not.
A meaningful comparison puts quotations on the same named place, Incoterms® version and cost basis. Atlas can help buyers compare supplier quotations and identify freight, insurance and destination charges that still need confirming. Ask for the complete term, named port and Incoterms® 2020 in writing; the contract, insurer, carrier and relevant authorities determine the final obligations and charges for each shipment.
ICC — Incoterms® 2020 delivery and risk guidance