FOB, CFR or CIF: which Incoterm to choose when buying from India

Shipping  ·  Published 28 October 2026  ·  Laxmi Global

An Incoterm tells you who arranges and pays for each part of the journey and the point at which risk moves from seller to buyer. Choosing the wrong one makes quotes hard to compare. Here is how the three most common sea-freight terms differ under Incoterms 2020.

When FOB makes sense

You have a trusted freight forwarder, negotiate good freight rates, or want control over the carrier and routing. The supplier's price covers only goods and Indian-side costs, so it is easy to compare between suppliers.

When CFR or CIF makes sense

You prefer one landed-port price, or you do not have established freight arrangements. With CIF, the minimum insurance cover is limited, so buyers who need wider cover often arrange their own.

A point many buyers miss

Under all three terms, risk passes when the goods are on board at the Indian port, even though under CFR and CIF the seller pays freight. If cargo is damaged at sea, the claim is yours, which is why insurance matters. For containerised cargo, the ICC's own guidance notes that FCA, CPT and CIP can fit better than FOB, CFR and CIF, because goods are handed to the carrier at a terminal rather than at the ship's rail. Raise this with your supplier if it matters for your setup.

How to compare quotes

1. Ask every supplier to quote on the same Incoterm and named port.
2. Confirm the pack size, container type and quantity per container.
3. Check who pays origin charges such as terminal handling and documentation.
4. Add your own freight, insurance and duties when comparing FOB with CIF.

We quote FOB, CFR or CIF depending on your preference. Tell us your destination port and we will price it on the term you choose.