Navigating CFR vs. CIF is crucial for managing risks and costs in international trade. Let’s explore their key differences and similarities.
What Questions We Will Answer in This Blog
How Does CIF Work?
When to Use CFR?
What are the critical differences between CFR and CIF Incoterms®?
How do these Incoterms® impact buyers' and sellers' costs and risks?
What is the right Incoterm® for your business and why?
Introduction
As a Customs Consultant with over 20 years of experience, I’ve seen how important it is for businesses to choose the right Incoterms®. They determine not only who pays for shipping and insurance but also when the risk transfers from seller to buyer. I’ll walk you through the key differences between CFR and CIF, so you can make informed decisions that benefit your business.
“Understanding the risk and cost distribution under CFR and CIF is critical for mitigating losses in transit. The wrong choice could lead to unnecessary financial exposure.”— Arne Mielken, Managing Director, Customs Manager Ltd