Incoterms for Flooring Buyers: FOB, CIF, CFR and DDP Compared

Two quotations for the same floor can differ by thousands of dollars because they use different Incoterms. The term decides who books the freight, who pays for insurance and where the risk moves from seller to buyer. It is part of the price, not a detail.

FOB: the common default

Under FOB, the seller delivers the goods on board the vessel at the named port. The buyer pays the ocean freight and insurance and handles import clearance. For experienced importers, FOB gives the most control over freight forwarders and costs.

CFR and CIF: seller books the freight

Under CFR, the seller pays the ocean freight to the destination port; under CIF, the seller also arranges insurance. Risk still passes when the goods are on board, so the buyer should check what the insurance actually covers.

DDP: delivered duty paid

Under DDP, the seller delivers to the buyer’s address with import duties paid. It looks simple for a first order, but the seller must be able to clear customs in the destination country and the price includes duties and local charges. Always ask for the breakdown.

Which term for which buyer

What to compare

Compare the same Incoterm across suppliers. A CIF quote and an FOB quote are not comparable until the freight and insurance are added. Ask for the port, the shipping line and the transit time behind the number.

Common mistakes

• Assuming CIF insurance covers the full value and all risks;
• Accepting DDP without knowing who pays the duty and the local charges;
• Forgetting that risk passes before the goods arrive;
• Comparing quotes that use different ports.

We quote FOB, CFR, CIF and DDP against your port, with the loading plan and the document list. Tell us the destination and the term you prefer in the quotation form.