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When sellers quote prices in their offers they usually state on what terms, at this price, they will deliver the goods. The price will certainly depend on the terms of delivery.
The most popular terms of delivery in foreign business transactions are:
· FOB (free on board);
· CIF (cost, insurance and freight);
· C & F (cost and freight);
· FOR (free on rail);
If the goods are offered on FOB terms the price will practically include the cost of the goods and transportation expenses to the port of shipment.
If the goods are offered on CIF terms the price will cover the cost of the goods, insurance expenses and freight or transportation expenses, to the port of destination.
If the goods are offered on C & F terms the price will cover the cost of the goods and freight to the port of destination.
If the goods are offered on FOR terms the price will include the cost of the goods and transportation expenses to the railway station only. These terms are similar to fob terms. The only difference is the mode of transportation. In case of fob terms the goods are shipped on board ships or planes. In case of for terms the goods are transported by railway.
Here are a few examples of how terms of delivery can be mentioned in offers:
· the price is USD 2,000.00 per ton FOB New York;
· the quoted price is GBP 1,200.00 each CIF Murmansk;
· we can offer the goods at the price of GBP 78.00 per meter
· C & F Liverpool;
· the goods are offered on a FOR basis.
Vocabulary Bank
FOB (free on board) | фоб |
CIF (cost insurance and freight) | сиф |
C & F (cost and freight | каф |
FOR (free on rail) | франко-железнодорожная станция |
port | порт |
port of shipment | порт погрузки |
port of destination | порт назначения |
similar | аналогичный, подобный |
similar to smth | аналогичный чему-либо |
mode | способ |
mode of transportation | способ перевозки |
shipper | грузоотправитель |
to transport | перевозить |
per ton (kilo, metre) | за тонну (килограмм, метр) |
per day (week, month) | за день (неделю, месяц) |
per head | на человека |
Exercises
Open the brackets using the verbs in the correct forms.
1. When the sellers quote prices they usually (to state) on what terms they (to deliver) the goods.
2. They also state at what prices the goods (to deliver)
3. If the goods (to offer) on FOB terms the price will cover the cost of the goods and transportation expenses to the port of shipment.
4. If the goods (to offer) on CIF terms the price (to include) cost, insurance and freight.
5. In case of FOB terms the goods usually (to ship) on board ships or planes.
6. Terms of delivery can (to state) in different ways.
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Vocabulary Bank | | | Unit 24. ENGLISH BANKS |