FOB stands for "free on board," which means the goods have left the warehouse and are ready for pickup by the customer. CIF stands for "cost, insurance, and freight," which includes all of the costs associated with bringing the goods from the manufacturer to your door. DDP refers to a "drawdown payment," which is a mandatory deposit that a company makes in order to guarantee that they will receive their full shipment at a later date.
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What is FOB?
CIF: Container inspection facility
CNF: Container not found facility
DDP: Dead letter push
FOB: Free on board. The term FOB refers to the ship's location at the time of the shipment, and does not include the port of loading or unloading. The term is used mainly for maritime transportation.
CIF: Container inspection facility. A CIF is a place where containers are inspected before they are loaded onto ships. The purpose of the inspection is to ensure that the cargo meets safety and environmental requirements.
CNF: Container not found facility. A CNF is a facility where containers that are loaded onto ships but never reach their destination are stored. In some cases, the containers may be lost in transit, while in other cases they may be abandoned by their owners.
DDP: Dead letter push. A DDP is a mechanism used by shippers to notify receivers of shipments that have been declared as lost or abandoned. Dead letters are automatically generated for shipments that have not been received after an extended period of time, typically six months.
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What is CIF?
What is FOB?
What is DDP?
The difference between CIF, FOB, and DDP transactions is that CIF stands for Cost, Insurance, and Freight. This means that the cost of the goods being shipped is taken care of by the shipping company, insurance is added to cover any potential losses during transport, and finally the freight (or delivery) fee is paid to the recipient. FOB stands for Free On Board and refers to the fact that the buyer (the customer) pays all of these costs up-front. DDP stands for Delivery Duty Paid and refers to the fact that the seller (the supplier) pays all of these costs once the goods have been delivered.
What is CNF?
What is the difference between FOB,CIF CNF, and DDP Transaction?
FOB: Free on Board. This term is used when a shipment leaves the port of origin with all its contents on board the vessel. The terms "freight on board" and "cargo on board" are also used.
CIF: Cost, Insurance, Freight. This acronym is used when a shipper pays for the cost of shipping cargo, including insurance, from the port of origin to the destination. The CIF price may be lower than the FOB price because insurance premiums are included in the cost of shipping.
CNF: Containerized New Freight. When a shipper orders freight in containers from a carrier, the freight is usually billed according to weight and not by volume. This means that the cost per containerized pound of cargo is less expensive than shipping bulk cargo in open trucks or trailers.
DDP: Deferred Delivery Price. This term refers to a contract between two businesses whereby one party agrees to deliver goods at a later date and receive payment in advance.
What is DDP?
DDP stands for Duty-Free, Cost, and Freight. The most common scenario where DDP is used is when a company exports goods to another country without paying any duties or taxes.
CIF CNF stands for Container In Container. This is a shipping method where goods are shipped in containers from one country to another without any intermediate Customs inspections.
FOB stands for Factory Orders Basis. This is the standard way goods are shipped from the factory or warehouse service to the customer. The factory ships the goods to the shipping company, who then ships the goods to the customer.
How do they work?
FOB: A FOB (Free on Board) is a shipping term that means the goods are ready to be shipped from the source port to the customer. When a shipment arrives at the port where it is being delivered, the shipper places the shipment on board a ship or aircraft, which then proceeds to its final destination.
CIF: A CIF (Cost, Insurance and Freight) is a shipping term that means the goods have left the supplier's premises and are en route to your door. The CIF price includes all transportation costs including insurance, but does not include any duties or taxes levied by customs in your country of destination.
CNF: A CNF (Cost, Net Forward) is a shipping term that means you are paying both the cost of transport plus a markup for profit. This is often used when importing raw materials into your factory. The CNF price represents total transport costs plus a commission fee paid by the importer to his foreign supplier.
DPP: A DPP (Delivery Point Party) is an intermediary party in a shipment who agrees to take responsibility for delivering the goods from their origin port to their final destination at an agreed upon time
How to choose the right one for your company?
When it comes to international shipping, there are a few different terms that you might hear referred to. FOB stands for "free on board," which means that the shipment will be delivered to the company's dock without any additional charges. CIF stands for "cost, insurance and freight," which covers the costs of shipping the merchandise overseas, as well as third-party insurance. CNF stands for "container number, freight," and is used when you want to track the entire shipment from start to finish. DDP stands for "deadhead payment," which is a fee assessed by the carrier in order to cover the cost of staffing their ship during the voyage between two ports.
Conclusion
There is a big difference between FOB, CIF and CNF shipping Business Lines. FOB (Freight on Board) means the shipment will be delivered to the customer’s dock or warehouse. CIF (Cost, Insurance and Freight) means that all of these costs will be paid by the buyer, usually upon receipt of the goods at their destination. DDP (Delivery Duty Paid) means that the freight is paid by the carrier as part of the delivery process.
