3.2.2. The Incoterms 2010 rules: About shipment term detail will show in sales contact and quotation. Shipment term is very important point that who will take responsibility and until which part between seller and buyer. Vivac Company always chose only these 3 shipment terms. Free On Board, Cost Insurance and Freight and Cost and Freight.
3.2.2.1. Free On Board: A trade term requiring the seller to deliver goods on board a vessel
designated by the buyer. The seller fulfills its obligations to deliver when the goods have passed over the ship's rail.
3.2.2.2. Cost Insurance and Freight: A trade term requiring the seller to arrange for the
carriage of goods by sea to a port of destination, and provide the buyer with the documents necessary to obtain the goods from the carrier.
3.2.2.3. Cost and Freight: A trade term requiring the seller to arrange for the carriage of
goods by sea to a port of destination, and provide the buyer with the documents necessary to obtain the goods from the carrier. Under CFR, the seller does not have to procure marine insurance against the risk of loss or damage to the goods during transit.
For each shipment term has advantage and disadvantage at last it depend on negotiation if customer need an insurance machine price will be increased.
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