Incoterms for Commodity Trade
Understanding shipping terms is essential for any commodity buyer. Here are the most common terms used in agricultural exports.
FOB (Free On Board)
Seller delivers goods on board the vessel at the port of shipment. Buyer assumes risk and cost from that point. Most common for experienced importers.
CIF (Cost, Insurance, Freight)
Seller covers cost of goods, insurance, and freight to the destination port. Recommended for first-time buyers who want a turnkey solution.
CFR (Cost and Freight)
Similar to CIF but without insurance. Buyer arranges their own cargo insurance.
Which Term to Choose?
- FOB: Best for experienced buyers with their own logistics
- CIF: Best for first-time buyers or those wanting simplicity
- CFR: Best when buyer has preferred insurance provider
T&T Services offers all three terms. Request a quote with your preferred shipping terms.