What do you know about Freight Terms?

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Freight terms refer to the agreed-upon conditions between the buyer and seller regarding the transportation of goods.

Freight terms determine who is responsible for the cost and risk of transporting goods.
Common freight terms include FOB (Free on Board), CIF (Cost, Insurance, and Freight), and EXW (Ex Works).
FOB means the seller is responsible for the goods until they are loaded onto the shipping vessel, while CIF means the seller is responsible for the goods until they reach the destination port.
EXW means the buyer is responsible for all transportation costs and risks from the seller's premises.
Understanding freight terms is important for procurement professionals to ensure they are getting the best value for their organization.

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