FOB vs CIF (shipping terms)
A short guide for importers and procurement teams planning container shipments.
FOB (Free on Board)
Supplier delivers goods to the port and clears export. Buyer arranges ocean freight and insurance.
CIF (Cost, Insurance, and Freight)
Supplier arranges ocean freight and insurance to the destination port (buyer handles import clearance).
What to include in an RFQ
- Preferred term: FOB or CIF
- Port of loading (if specified) and destination port
- Target container size: 20’ or 40’
- Delivery timeline and any receiving constraints