Export & Trade
FOB vs CIF: Which Incoterm Should Importers Use?
Understand the difference between FOB and CIF and choose the right incoterm for your food, ingredient or chemical imports.
12 June 2026 5 min read
Incoterms define who pays for freight and insurance and where risk transfers between seller and buyer. For most importers of EU-origin products, the choice comes down to FOB or CIF.
What FOB means
Under FOB (Free On Board) Rotterdam or Antwerp, the seller delivers the goods loaded on board at the port of origin. From there, the buyer arranges and pays for ocean freight and insurance. FOB suits buyers with their own forwarder or freight rates.
What CIF means
Under CIF (Cost, Insurance and Freight), the seller arranges and pays freight and insurance to the buyer's destination port. CIF is simpler for buyers without freight contracts, but the price depends on route, volume and timing — so CIF is quoted after the destination port and quantity are confirmed.
How to choose
- Choose FOB if you have a forwarder or competitive freight rates
- Choose CIF for a single landed price to your port
- For temperature-sensitive dairy or chocolate, confirm reefer needs either way
- Always confirm which documents are included
Key takeaways
- FOB: you control freight from the port of origin
- CIF: the supplier delivers to your destination port
- CIF pricing is confirmed after port and quantity
- Either term can be combined with mixed-container loading
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