FOB versus CIF supplier quotes: a comparison worksheet

FOB and CIF are used for sea or inland-waterway transport. A CIF price includes seller-arranged carriage and insurance under the rule, while risk does not simply wait until arrival at the destination. Compare the actual named ports and shipment, and read the full rule before assigning responsibilities.

Ask what is included

Request the freight basis, insurance cover evidence and terms, transit assumptions, and any destination handling or local delivery charges left to the buyer. For FOB, get a comparable freight and insurance estimate from your forwarder. Keep uncertain port charges as open items rather than pretending they are included.

Compare a common endpoint

Use the same final destination, quantity, and shipment window. Confirm that packing, product specifications, and inspection rights match. A supplier-arranged freight price may simplify administration but give the buyer less control over carrier selection. Record that trade-off alongside the total cost; it is not visible in the unit price.

Worked sea-freight comparison

For 600 units to one destination port, ask Supplier A for an FOB named-port quote and Supplier B for CIF at the same destination port. Obtain a comparable freight and insurance estimate for A. Enter confirmed amounts in the comparison tool under one currency and quantity; record the insurance coverage and destination fees in notes. Common error: assuming CIF means risk stays with the seller until arrival or that local delivery is included. Check the named ports and the contract before making either assumption.

Source context: International Chamber of Commerce — Incoterms® 2020 supports this limited point: Incoterms® 2020 allocates specified delivery, cost, and risk responsibilities between buyer and seller. The buyer procedure above is Suppliers Help editorial guidance. Source checked 2026-09-27.