What Does CNF/FOB Stand For?

Being complete opposites, CNF and FOB stand for completely different things when it comes to shipping products and ensuring that they get to the customer successfully:

• CNF

This stands for cost and freight, which means that the sells pays for the all of the transportation costs that it is going to take to ensure that the product gets to the customer. The freight of the product is going to be included within the price. This is a good system for the customer as they know that they are not going to have to pay for the product to be transported as well as paying for the product itself. It is going to cost the seller more but it is going to ensure that the customer is more attracted to doing business with this particular seller as they know that all of the transportation is going to be sported and paid for.

• FOB

This stands for the complete opposite to CNF. FOB stands for freight on board, and therefore the customer has to pay for the transportation costs as well as the product itself to ensure that it is going to be shipped to them successfully. This is very unattractive within the market as the customer is not going to want to pay more than they have to for the product, and once they find out that they are going to have to pay for the shipping to, they might look elsewhere to see if there is the same product for sale which has the CNF aspect to save them some money.

These two different styles of selling and buying products are used to ensure that the customer saves money, or the company gains more money, and it is the way in which everything is sold in today's market. If you have ever bought anything that needs to be shipped or transported, you can be sure that you will have seen if you have to pay for the shipping or if the company does, and that is exactly what CNF and FOB represent.

CNF means the seller pays all freight and transportation costs involved in shipping their goods. The freight is included in the price.

FOB means Freight On Board so you pay for the product and then pay for the transportation costs.

Travis

Cost N freight

FOB stands for Freight on board. It is a common business term. It means that the price of the product includes the shipping cost from the count of shipment. That way you would have to pay for the insurances and clearance only.

The term F.O.B. means Free On Board. In a trade term it requires the seller to transport commodities on board on a container selected by the purchaser. The supplier executes its commitment to transport when the merchandise have been approved l. The term Fob when used in trade terms, means seller has a responsibility to transport goods to a named place for transport to a carrier.

FOB is a legal term. It is very important to realize FOB. Its accurate explanation is to a great extent more complicated and contrasts by country.
These are the contracts concerning worldwide transportation. They frequently have abbreviated trade conditions that explain matters like the time and situation of delivery and payment, at what time the danger of loss shifts from the supplier to the purchaser, over and above who pays the expenses of cargo and insurance.