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FOB vs CIF for Fabric Imports — Which Incoterm to Use
Under FOB (free on board) the mill delivers the goods loaded on the vessel at the origin port and you arrange and pay ocean freight, insurance and everything after. Under CIF (cost, insurance and freight) the mill also books and pays the ocean freight and minimum marine insurance to your destination port, then you take over. FOB gives you control of the freight and usually a better rate if you have a forwarder; CIF is simpler if you do not.
| FOB | CIF | |
|---|---|---|
| Who books ocean freight | You (the buyer) | The seller / mill |
| Who pays marine insurance | You | Seller, minimum cover only |
| Risk transfers | On board at origin port | On board at origin port (same as FOB) |
| Best when | You have a freight forwarder and rates | You want one all-in number to the port |
| Landed-cost visibility | You control and see every leg | Freight is bundled; compare carefully |
Choose FOB
You have a forwarder, ship regularly, and want to control routing and freight cost.
Choose CIF
You import occasionally and prefer a single quoted price to your destination port.
Common questions
Does CIF insurance actually protect me?
CIF only obliges the seller to buy minimum cover (Institute Cargo Clauses C), which excludes many common loss types. If the cargo value matters, arrange your own all-risk cover or use CIP with a higher clause.
What do you quote from Kishangarh?
FOB Mundra or Nhava Sheva as standard, CIF to your destination port on request, and EXW ex-works if you consolidate in India. Inland haulage from the mill to port is included in our FOB.
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Not sure which fits your spec? Send us the end use and we will recommend one.