Incoterms Explained for Food Importers: FOB vs CIF vs CNF
A clear breakdown of the Incoterms food buyers meet most — FOB, CIF, CNF, and Ex-Works — and how to choose the right one for your import.
Incoterms define who pays for what, and where risk passes from seller to buyer. Getting them right avoids surprises and disputes. Here are the four you’ll meet most in produce trade.
Ex-Works (EXW)
The seller makes goods available at their facility; the buyer arranges and pays for everything after that. Maximum control for the buyer, maximum responsibility too.
FOB — Free On Board
The seller delivers and loads the goods onto the vessel at the port of origin. Risk passes once on board. The buyer arranges sea freight and insurance. Common and transparent.
CNF (CFR) — Cost and Freight
The seller pays freight to the destination port, but insurance is the buyer’s responsibility. Useful when the buyer prefers to insure on their own terms.
CIF — Cost, Insurance and Freight
Like CNF, but the seller also arranges insurance to the destination port. Simplest for buyers who want a single landed cost.
How to choose
If you have a trusted freight forwarder, FOB gives control. If you want simplicity, CIF bundles freight and insurance. Always confirm the named port with the term.
We quote on FOB, CIF, CNF, and Ex-Works. Request a quote with your preferred term and destination port.
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