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What are the pros and cons of CIF and FOB?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 aliya bhat asked over 2 years ago

What are the pros and cons of CIF and FOB? also Why buyers trade in CIF and why sellers trade in FOB?

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 acharya answered over 2 years ago

Select the FOB price of the transaction, shipping and insurance in the unstable market conditions fluctuate in their favor. But there are many passive areas, such as: delay to send vessels as importers, or for a variety of situations lead to shipment delays, vessel name changes, it will enable exporters to increase the cost of warehousing and other expenses, or is caused by late receipt of payment loss of interest. Exporters on export control of goods in FOB conditions, due to contact with the carrier is deployed to guide the importer, the goods once the shipment, the exporter even if you want to resell the goods in transit or destination, or take other remedial measures also gone through quite a number of twists and turns.

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