FOB vs CIF: The Incoterm That Actually Protects Your Margins
FOB and CIF are both for sea freight, but they split costs and risk in ways that can quietly kill your margin. Here's how to pick the right one.
10 articles in this category
FOB and CIF are both for sea freight, but they split costs and risk in ways that can quietly kill your margin. Here's how to pick the right one.
A contrarian take on export terms: FOB often backfires. We walk through a real-world scenario to show why FCA or CIF might be smarter choices.
A worked case showing why the $800 de minimis exemption fails as a business model, and how to build a compliant import operation that survives past th...
Under CIF, risk passes at loading, not at destination. We walk a real shipment to show why sellers' obligations end early and buyers need insurance.
Most exporters still cling to FOB and CIF, but their risk transfer at the ship's rail is outdated for containerized cargo. Here's why you should switc...
CIF seems easy, but it doesn't cover your goods. As a buyer, you're exposed to risk and may face delays. This article tells you why to switch to FOB o...
CIF seems easy—seller handles freight and insurance. But risk transfers at loading, and insurance is minimal. Here's why FOB gives you control and cla...
FOB and CIF look similar but hide a critical risk difference. Here's why FOB usually beats CIF for buyers—and when CIF makes sense.
FOB and CIF are the two most used Incoterms in ocean freight, but they confuse many traders. Learn the real risk and cost split, and why the insurance...
The Incoterms 2020 update changed the game for FOB and CIF. I break down why FOB might be costing you more than you think and what to use instead.