FOB vs CIF for Spice Imports
Under FOB the buyer takes freight and risk at the ship's rail; under CIF the seller pays freight and insurance to the destination port.
What is the difference between FOB and CIF for spice imports?
Under FOB the buyer takes freight and risk once goods are on board, so you arrange and pay ocean freight. Under CIF the seller pays freight and adds insurance to the destination port. CFR sits between: seller pays freight but not insurance.
Who pays and who carries the risk
| Incoterm | Seller pays freight | Seller pays insurance |
|---|---|---|
| FOB | No | No |
| CFR | Yes | No |
| CIF | Yes | Yes |
Which to choose
Choose FOB when you have your own freight rates and want to control the carrier and routing; you then buy insurance yourself. Choose CIF for a single landed number and less logistics work, accepting that the seller controls the freight booking.
Whatever you pick, the goods value inside the quote still moves daily, so compare suppliers on the same Incoterm and the same dated basis, or you are comparing freight arrangements rather than spice price.
Frequently asked
Does CIF mean I am fully insured door to door?
No. CIF insurance covers the sea leg to the destination port at a minimum level. Inland transport and any higher cover are arranged separately.
Which Incoterm is cheaper?
Neither by definition; CIF just bundles freight and insurance into the seller's price. The true cost depends on whether you or the seller gets the better freight rate.
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Start a sourcing enquiry →What this page does not tell you
- Insurance cover level
- The minimum insurance under CIF and any top-up are policy-specific; no cover percentage is stated here. Confirm the policy terms in the contract.
Reviewed 16 July 2026.
Sources
- CBI — Entering the European market for spices and herbs· Tier 2, retrieved 2026-07-16