FOB vs CIF: What's the Difference?
The short answer: FOB stops at the origin port; CIF carries on to the destination port. Here's exactly what changes — cost, responsibility, risk, and insurance.
FOB vs CIF at a Glance
| Dimension | FOB | CIF |
|---|---|---|
| Full name | Free On Board | Cost, Insurance & Freight |
| Price includes | Goods + inland freight + port charges | FOB + ocean freight + marine insurance |
| Who pays freight | Buyer | Seller (to destination port) |
| Who pays insurance | Buyer | Seller (110% of CIF value) |
| Risk transfers | On board at origin port | On board at origin port (same) |
| Best for | Buyers with a freight forwarder | New importers wanting an all-in price |
When to Use FOB vs CIF
Choose FOB when…
You have your own freight forwarder, want to control the carrier, or can get better freight rates yourself. FOB is usually cheaper for experienced importers.
Choose CIF when…
You're new to importing, want a single price to the destination port, or the supplier has better freight rates. CIF simplifies logistics but gives you less control.
FOB vs CIF — Common Questions
Which is cheaper, FOB or CIF?
FOB is often cheaper for the buyer, because you arrange freight yourself and avoid the supplier's freight markup. But CIF can be cheaper if your supplier has volume freight discounts.
Does the buyer bear less risk under CIF?
No. Risk transfers at the same point under both — when goods are loaded on board at origin. CIF only changes who pays freight and insurance, not who bears risk.
How do I calculate FOB and CIF prices?
Use our FOB calculator to build FOB from your EXW cost, then our CIF calculator to add freight and insurance.
What comes after CIF?
DDP (Delivered Duty Paid) adds import duty and destination delivery. To see your true total cost including duty, use our landed cost calculator.