F.O.B. and C.I.F.

FOB (Free On Board) and CIF (Cost, Insurance, Freight) are Incoterms that allocate cost, risk, and the carriage and insurance obligation between seller and buyer. Under both the 2020 Incoterms, risk passes when the goods are loaded on board, but the CIF seller must contract carriage and minimum cargo insurance to the named destination, while the FOB buyer arranges and pays for the main carriage. The choice drives who holds the bill of lading, who claims against the carrier, and who sues the underwriter.