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“Terms of Sale: FOB vs. CFR” Seminar

 Jarrett Beatty, Dennis Pong, Daryl Raibl & Peter Swanson

 

In its continuing effort to provide topical and informative seminars, the VMAA hosted its first seminar of 2013 on Wednesday, January 23, 2013 at the Bentall V conference center.   The seminar was entitled “Terms of Sale: FOB vs. CFR” and featured four presenters having special experience in the field of the sale and transportation of goods.   The speakers were Daryl Raibl of CTL Westrans, representing the broker’s view, Jarrett Beatty of Parrish and Heimbecker, Limited,  representing the vendor’s view, Dennis Pong of Marsh Canada, representing the insurer’s view and Peter Swanson of Bernard & Partners, representing the legal view.   The seminar was extremely well attended  having sold out a week in advance.

 As to the discussion, the presenters covered the meaning of the general sales terms, FOB, CFR and CIF.  They then discussed some of the advantages and disadvantages of selling goods on FOB, CFR or CIF terms with Mr. Raibl setting out the general obligations under the different terms.  Mr. Beatty provided an excellent vendor perspective on why many sellers will often prefer to sell CIF if they can.  Mr. Pong provided a detailed overview of the different types of insurance that may be used in the context of such transactions and the scope of cover typically provided.   And finally, Mr. Swanson wrapped up with a discussion of the law as it relates to FOB, CFR and CIF transactions.

The next VMAA seminar is tentatively scheduled for early March and will deal with terms of carriage, including the carriage of goods on FIO vs. Liner terms.