FOB, CFR or CIF? Choosing Incoterms for Bulk Magnesium Sulphate

The Incoterm on your contract decides who pays for freight and insurance, and the point where risk passes from seller to buyer. For container shipments of magnesium sulphate, three terms cover almost every deal.

FOB — Free On Board

We deliver the goods, export-cleared, on board the vessel at the Indian load port. From that point the buyer pays ocean freight and insurance and carries the risk. FOB suits buyers with their own freight forwarder or a strong contract rate with a shipping line.

CFR — Cost and Freight

We pay ocean freight to the named destination port, but risk still passes to the buyer once the goods are on board in India. The buyer arranges insurance. CFR is popular with importers who want a simple delivered-port price without managing freight.

CIF — Cost, Insurance and Freight

Like CFR, plus we arrange minimum cargo insurance for the buyer's benefit. Many letters of credit and some importing countries' rules call for CIF.

Which to choose

Compare FOB plus your own freight quote against our CFR price. Whichever is lower is your better option, provided you are comfortable with the service. Payment terms such as TT advance or an irrevocable letter of credit are agreed separately. Ask for a quote on any of the three terms.