Logistics2 min readReviewed July 14, 2026

FOB, CIF and the Importance of the Named Delivery Point

FOB and CIF allocate costs and responsibilities differently, but neither term is complete without a named port, agreed shipment window and the applicable Incoterms® version.

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FOB requires a named port of shipment

Under an FOB structure, the commercial file should identify the port of shipment and define the documentary and operational steps leading to loading. Freight beyond that point is handled according to the executed contract.

CIF requires destination and insurance clarity

A CIF indication requires a named destination port, shipment size, delivery window, freight basis and insurance terms. Without those facts, a reliable CIF figure cannot be calculated.

The contract governs

Incoterms support the contract; they do not replace it. Title transfer, payment conditions, inspection, governing law and remedies must still be addressed in the definitive agreement.

From information to execution

Have a defined commercial requirement?

Provide the exact product, specification, volume, destination and delivery basis. Nexus will assess fit and the next appropriate step.

Prepare procurement requirement