Incoterms FOB, CFR, CIF and DAP in agricultural commodities
What each Incoterm covers when buying fertilizers, grains, sugar or coffee by the container: costs, risk, insurance and when to use each one.
Incoterms 2020 define who pays for each leg of transport and when risk passes from seller to buyer. Four of them dominate agricultural commodity trade.
| Term | Seller pays | Risk passes to buyer |
|---|---|---|
| FOB | Until loaded on board at origin | On loading |
| CFR | Freight to destination port | On loading |
| CIF | Freight and insurance to destination | On loading |
| DAP | Everything to the agreed place | On arrival, ready for unloading |
Which one to choose?
- FOB: if you have your own freight or a forwarder with good rates.
- CFR: if you prefer the seller to book freight while you insure the cargo.
- CIF: if you want a delivered-port price with insurance included.
- DAP: if you need goods at a specific destination place.
We quote FOB, CFR, CIF or DAP depending on destination. See how we work or request a quote.