REVIEWING THE TERMS: RESPONSIBILITIES OF EACH PARTY, POINT OF SHIPMENT TRANSFER, AND TRANSFER OF RISK
Now, Let's define these Terms:
FAS
Free Alongside Ship
The consignor is responsible for export clearance and is considered to have fulfilled all his/her shipping obligations when the consignment is delivered alongside the vessel at named port of departure chosen by the consignee. Risk transfers from Consignor to Consignee at alongside the vessel and Consignee shoulders all costs of shipping and risk from that point on.
FOB
Free On Board
The consignor is responsible for all costs and activities involved in delivering the consignment on bord the vessel at named port of shipment duly chosen by the consignee. The consignee bears all costs and risks from the point the consignment is on bord the vessel, meaning that the consignee pays for the actual freight, marine insurance, and all destination costs.
CFR
Cost and Freight
The consignor is responsible for all costs and activities of delivering the consignment on board the vessel, as well as paying for the international transport (Freight) up until the named port of destination. However, the risk transfers to the consignee when the consignment is on board the vessel and the consignee pays for all costs from the port of destination until delivery at place.
CIF
Cost, Insurance and Freight
Like CFR, the consignor is responsible for all costs and activities involved in delivering the consignment on board the vessel. The consignor pays for all origin charges and international freight until named port of destination. The consignor also has to arrange minimum insurance cover for the transport leg they are responsible for. Thus, if the consignee requires more insurance cover, they can either arrange for themselves or expressly agree with the consignor to arrange more insurance coverage.
For review of parties Insurance liability associated with above incoterms