Who pays for the Freight?

In every international shipping transaction there is a shipper (exporter) and a consignee (importer). Sometimes these are the same company, but more often than not, these are two different companies working together to move the cargo along. So this leaves the question: Who pays the freight costs? This is question can only be answered by the people in the agreement. It always depends on the terms made between the shipper and consignee when the cargo was first ordered. According to the International Commercial Terms or rules for international shipping, there are a few different types of terms when it comes to freight costs. First there is FOB which means "free on board" or "freight on board" depending on who you are talking to. When a shipment is sent FOB, it means the responsibility of the shipment shifts once the cargo is completely loaded on the vessel or plane. This includes payment as well as liability for the cargo itself. The next type would be CNF (C&F or CFR) which stands for "cost and freight". Under these terms, the shipper pays for the ocean shipping or air freight costs from their origin port or airport all the way through to the final destination. In this case, the consignee pays the insurance. The last type is CIF or "cost, insurance, freight" which is when the cost, insurance and freight are all the responsibility of the shipper. This way the shipper is solely responsible for the shipment until it reaches its destination port. No matter which way the shipper and consignee decide to ship, the terms will determine how it will ship from beginning to end.