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Maritime and Inland Waterway Transport Rules Free Ship To Ship (FAS) Free Ship To Ship (FAS) means that the seller delivers the goods when the goods are placed next to the ship (for example, on a quay or on a barge) at the designated port of shipment by the buyer, or when the seller supplies the goods. The risk of loss or damage to the goods while the goods are next to the ship and the buyer bears all costs from then on. Free to Ship (FOB) Free to Ship (FOB) means that the seller delivers or supplies the goods already delivered to the buyer on the named vessel at the named port of shipment by the buyer. When the goods are loaded on the ship; risk of loss or damage shall be borne by the buyer from then on at all costs. Charges and Freight (CFR) Charges and Freight (CFR) means that the seller delivers the goods to the buyer on board or supplies the goods already delivered. The risk of loss or damage to the goods while the goods are on board; the seller fulfills his obligation to deliver the goods regardless of whether the specified quantity or all of the goods actually arrive at their destination in good condition; transferred to the buyer. In the CFR, the seller has no obligation to the buyer to purchase insurance coverage: the buyer is advised to buy some coverage for himself. Costs, Insurance and Freight Included (CIF) Costs, Insurance and Freight Included (CIF) means that the seller delivers the goods to the buyer on board or supplies the goods already delivered. The risk of loss or damage to the goods while the goods are on board; the seller fulfills his obligation to deliver the goods regardless of whether the specified quantity or all of the goods actually arrive at their destination in good condition; transferred to the buyer.