How to calculate freight charges FOB and CIF?

FOB = Free On Board

CIF = Cost, Insurance & Freight

FOB = (Production Cost+Profit+Expenses) + Transport to the Port of Origin Costs

CIF = FOB + Freight from port of Origin to the Port of Destiny + Insurance

So as you see CIF is including the cost of Freight, if you want to calculate it... you would do like this

Freight = FOB - Insurance ( - Other Costs if applicable)



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