What an Incoterm does, and what it does not
An Incoterms rule, plus a named place, says where the seller’s delivery duty ends and how main freight and, for CIF, a minimum insurance duty are split. It does not say when you pay, when title passes, or what quality documents you need. Those belong in the contract and in the RFQ beside the term. Official rules: https://iccwbo.org/business-solutions/incoterms-rules/incoterms-2020/
Why “CIF any port” is not a term
Without a named place the three letters do not describe a price. List acceptable discharge ports if you have several; do not write “any European port”.
FOB, CFR and CIF as a set (sea bulk and bags)
On many dry-bulk and bagged sea cargoes these three rules are compared together. Risk still transfers on board at origin under all three. CFR adds freight to the named destination port. CIF adds a seller duty to obtain minimum insurance as well as freight. Minimum CIF cover is not all-risks unless the contract says more. Two CIF quotes can still differ on routing, destination charges and insurance clauses.
Definitions of each rule live on the FOB, CFR and CIF glossary pages. This article is the decision layer for the RFQ, not a second copy of those pages.
| Rule | Named place | Main freight | Seller insurance duty under the rule | Usual risk transfer |
|---|---|---|---|---|
| FOB | Port of shipment | Buyer | None under the rule | On board at origin |
| CFR | Port of destination | Seller | None under the rule | On board at origin |
| CIF | Port of destination | Seller | Minimum cover required | On board at origin |
Containerised cargo: FOB versus FCA
ICC states that FOB is not appropriate where goods are handed to a carrier before they are on board, for example at a container terminal, and that FCA should be considered instead. See ICC Academy, “Incoterms 2020: FCA or FOB?”: https://academy.iccwbo.org/incoterms/article/incoterms-2020-fca-or-fob/
Keep the comparison short here. The FOB glossary page holds the RFQ wording. This article does not create a separate FCA guide.
Payment sits beside the Incoterm
An LC at sight on CIF terms is a different package from TT in advance on FOB. Put both the rule-plus-place and the payment instrument in the RFQ so one quotation prices one transaction.
Primary sources
ICC Incoterms 2020: https://iccwbo.org/business-solutions/incoterms-rules/incoterms-2020/
ICC Academy, FCA or FOB: https://academy.iccwbo.org/incoterms/article/incoterms-2020-fca-or-fob/