When a price quotation is sent, a number of specified commercial terms indicate who bears delivery-related costs.
- LOCO (spot price): the price charged at the seller’s warehouse; the buyer bears all costs from there.
- FRANCO / DDP (Delivery Duty Paid): the price includes all delivery charges until the goods reach the buyer’s warehouse.
- Carriage Paid: the seller pays the cost of carriage and packaging, so the price is higher.
- Carriage Forward: the buyer pays for carriage from the seller’s warehouse to their own premises.
- Free on Board (FOB): the seller covers costs until the goods are placed on board a ship or plane at the port of departure; the buyer bears further costs.
- Free on Rail (FOR): the seller pays all costs including loading onto the rail; the buyer bears the rest.
- Free Alongside Ship/Train (FAS/FAT): goods are delivered alongside the ship or train; the buyer handles loading and further costs.
- Cost and Freight (C&F): the price covers the cost of goods and freight; the buyer covers insurance.
- Cost, Insurance and Freight (CIF): the price covers the cost of goods, insurance, and transport to the port of destination; the importer covers further costs.
- Ex-ship: the seller pays for transport to the port of destination and delivery alongside the ship; the buyer covers further transport.
