What is FOB vs CIF vs CNF for truck imports
1) FOB (Free On Board) – Port of Shipment
What’s included: Truck price + export docs + loading at origin port.
Seller does: Delivers truck on board the vessel at the origin port; export clearance.
Buyer does: Books shipping, pays ocean freight, buys insurance, handles destination port, customs, inland transport.
Risk transfer: When truck is loaded on the ship.
Best for: Buyers with logistics teams; want control over carriers and costs.
Example: FOB Tokyo = ¥3,000,000 (truck only, no sea freight/insurance).
2) CNF / CFR (Cost and Freight) – Destination Port
What’s included: FOB + ocean freight to destination port.
Seller does: Loads truck, pays sea freight, arranges shipping.
Buyer does: Buys insurance, pays destination port fees, customs, inland transport.
Risk transfer: Same as FOB – at loading on vessel.
Best for: Simpler than FOB; buyer controls insurance.
Example: CNF Los Angeles = ¥3,200,000 (truck + sea freight).
3) CIF (Cost, Insurance, Freight) – Destination Port
What’s included: CNF + marine insurance (minimum cover).
Seller does: Loads truck, pays freight and insurance, ships to destination port.
Buyer does: Destination port fees, customs, inland transport.
Risk transfer: Still at loading on vessel (insurance is for buyer’s risk after loading).
Best for: New importers; “one price” up to destination port.
Example: CIF Los Angeles = ¥3,250,000 (truck + freight + insurance).
Quick Comparison Table
Term | Includes | Who pays freight | Who insures | Risk passes |
FOB | Truck + export/loading | Buyer | Buyer | Origin port, on board |
CNF/CFR | FOB + sea freight | Seller | Buyer | Origin port, on board |
CIF | CNF + insurance | Seller | Seller (min cover) | Origin port, on board |
Key Notes for Truck Imports
All three are sea‑only (Ro‑Ro or container).
Customs duty/tax is almost always calculated on CIF value in most countries.
If you want door‑to‑door, use DDP (not FOB/CNF/CIF).