FOB, CFR or CIF? Choosing the Right Incoterm for Fresh Produce
Three letters decide who pays for the freight, who insures the container and where risk changes hands. Here is how produce buyers usually decide.
Most first-time buyers ask for a CIF price because it looks complete. Experienced buyers often ask for FOB and book their own freight. Neither is wrong — but each moves money and risk to a different place.
FOB — Free On Board
We deliver the container loaded on the vessel at Alexandria or Damietta. From that point the freight, insurance and risk are yours. Best when you have your own forwarder and negotiated freight rates.
CFR — Cost and Freight
We pay the sea freight to your port; you arrange insurance and take the risk from loading. A middle ground when you want one invoice but prefer your own insurer.
CIF — Cost, Insurance and Freight
We pay freight and insurance to your port. One price, one invoice, simplest for a trial shipment or a buyer new to the origin.
What we recommend
- First shipment: CIF, so you see the landed cost with no surprises.
- Programme buyers: FOB, once your freight rates beat ours.
- Airfreight strawberries and mangoes: CIF or DAP to the airport, because timing is everything.
Tell us your term and destination port and we quote on that basis — or ask us to quote all three side by side.