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Incoterms for Date Exports: FOB vs CIF Explained
Choosing the right Incoterm affects your total cost, risk, and logistics responsibilities when importing dates from Iran. Here’s a plain-language breakdown of the two most common terms we work with.
FOB (Free On Board)
Under FOB, the seller is responsible for delivering the goods to the port and loading them onto the vessel. From that point, the buyer takes on shipping costs, insurance, and risk. FOB is popular with buyers who already have their own freight forwarder or shipping arrangements and want more control over the logistics leg.
CFR (Cost and Freight)
Under CFR, the seller also arranges and pays for ocean freight to the destination port, but risk still transfers to the buyer once goods are loaded on the vessel. This shifts freight-cost planning to the seller while risk during transit remains with the buyer.
CIF (Cost, Insurance, and Freight)
CIF adds marine insurance on top of CFR — the seller arranges and pays for freight and insurance to the destination port. This is often preferred by buyers who want a simpler, all-in landed cost without managing freight and insurance separately.
Which Should You Choose?
If you have an established logistics network and want to minimize cost, FOB often works out cheaper. If you prefer simplicity and predictable landed costs, CIF can reduce coordination overhead, especially for first-time importers.
We work with FOB, CFR, and CIF terms from Iranian ports and can help you compare landed costs for your destination. See our FAQ page for more on shipping and payment terms, or reach out via WhatsApp for a quote.
