CIF vs. FOB: Choosing the Right Shipping Terms for Bulk FMCG

Shipping terms decide who pays for freight, insurance and risk. Here is how CIF and FOB compare.

FOB (Free On Board)

The seller delivers goods onto the vessel at the port of origin. You arrange and pay for ocean freight and insurance. FOB suits buyers with their own forwarder.

CIF (Cost, Insurance and Freight)

The seller pays freight and insurance to your destination port. CIF is simpler for first-time importers.

Documentation

Every shipment includes commercial invoice, packing list, bill of lading, certificate of origin and health certificates where required.

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