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Pricing basis
Standard terms for an oil cargo will include specified transportation loading arrangements such as:
- FOB – Free Onboard. Loaded onto a ship and ready for transport, but not including the costs associated with transport
- CIF – Cost, Insurance, Freight. Onboard a ship ready for receipt at the delivery point, with the cost of transport already built into the price, including insurance
- C&F – Cost and Freight. Onboard a ship ready for receipt at the delivery point, with the cost of transport already built into the price, but not including the cost of insurance
