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About CIF, ASWP, and FOB

In a FOB deal the End Buyer order/charters the vessel. In a CIF or CFR deal the Supplier secures the vessel. Even though the vessel is ordered by the supplier, the buyer is still responsible for the cost of vessel which is on the supplier’s invoice… Now if you see the “CIF ASWP” you should suspect it to be a scam. Why? Well … CIF ASWP stands for Cost Insurance and Freight to Any Safe World Port. 

This is a flawed term which does NOT exist in the real market. The CIF part of the term is correct, the ASWP is wrong. There is a simple logic behind this. The shipment cost cannot be the same to ANY World’s Port! For example the CIF (Cost Insurance and Freight) price to ship sugar from Brazil to China would be double compared to if it was shipped to South Africa. This could make it over half a million dollars price difference. No real buyer would be willing to pay extra just to get an “easily” quoted CIF ASWP price.

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