30 9 月, 2026
FOB vs CIF: Which Incoterm for Steel Import?
With FOB the seller delivers the goods on board at the port of shipment, and the buyer arranges and pays for the main carriage and insurance. With CIF the seller arranges and pays for carriage and insurance to the destination port. The steel price is the same; what changes is who controls and pays for the freight and who carries the risk at each point.
The practical difference
| Point | FOB | CIF |
|---|---|---|
| Freight booking | Buyer | Seller |
| Insurance | Buyer | Seller, to the minimum cover required |
| Risk transfers | When goods are on board at origin | When goods are on board at origin (same point) |
| Visibility of the freight cost | High — you see the freight line | Low — the freight is inside the price |
| Best when | You have freight rates and a forwarder you trust | You want a single landed price |
Why the risk point surprises buyers
Under both terms the risk passes when the goods are on board at the load port, even though under CIF the seller has paid for the carriage. If something happens at sea, the claim follows the insurance, which is why the cover arranged under CIF is worth checking rather than assuming.
How to choose
- Choose FOB when you have competitive freight rates and want visibility of every cost
- Choose CIF when you prefer one landed figure and do not have an established forwarder
- Whichever you choose, check the insurance cover and the named destination port
- Keep the term consistent across offers so the prices stay comparable
Related questions
See more answers in our Q&A and our steel knowledge base.
Frequently asked questions
What is the difference between FOB and CIF?
Under FOB the buyer arranges and pays for the main carriage and insurance; under CIF the seller does. The risk passes when the goods are on board at the load port under both terms.
Which is better for importing steel, FOB or CIF?
FOB suits buyers with competitive freight rates and a trusted forwarder, because they control and see the freight cost. CIF suits buyers who prefer a single landed price.
Does risk transfer at the same point under FOB and CIF?
Yes. Under both terms risk passes when the goods are on board at the port of shipment. The difference is who has arranged and paid for the carriage and insurance.
Still have a question about your order? Send the specification, quantity and destination port and we will answer it with the quotation. See our quality and inspection process, the product catalogue, or request a quotation.