What's the difference between FOB and CIF?
Short answer
Under FOB, the seller loads the goods on the vessel and the buyer pays and controls the sea freight. Under CIF, the seller pays the sea freight and minimum insurance to the destination port. Under both, risk passes to the buyer once the goods are on board at origin.
The detail
CIF can look simpler, but the supplier chooses the carrier and routing, and destination charges can be higher than expected.
FOB lets you choose the service, plan timings and see costs upfront.
If your landed costs feel unpredictable, switching to FOB is often a good place to start.
Written by the 365 Freight team · Last reviewed . General guidance only, so check the specifics for your shipment.Want us to look at your shipment?No job is too small. We reply within one working day.
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