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FOB, CFR or CIF? The Shipping Term That Changes Your Bill

Who pays for freight and insurance under each shipping term, in plain language.

By the Nurstones teamPublished Updated 3 min read
Stack of golden Palimanan sandstone slabs
Stack of golden Palimanan sandstone slabs.
Quick answer

Under FOB you pay ocean freight and marine insurance. Under CFR the seller pays freight and you insure. Under CIF the seller pays both. Our standard term is FOB Tanjung Priok, Jakarta.

What These Terms Are

FOB, CFR and CIF are Incoterms, standard trade terms that say who arranges and pays for each part of a sea shipment. They are separate from payment terms, which say when you pay.

Truck unloading raw natural stone blocks
A truck unloading raw stone blocks.

FOB: Free On Board

Under FOB the seller delivers the goods on board the vessel at the port of loading. For us this is Tanjung Priok, Jakarta, our standard term. After that, the buyer arranges and pays ocean freight and marine insurance.

CFR: Cost and Freight

Under CFR the seller pays the ocean freight to the named destination port. The buyer arranges marine insurance. We quote CFR to your destination port on request.

CIF: Cost, Insurance and Freight

CIF is like CFR, but the seller also arranges marine insurance. We quote CIF to your destination port on request.

Who Pays What

Shipping term options
TermWhere we deliverOcean freightMarine insurance
FOB (our standard)On board at Tanjung Priok, JakartaBuyerBuyer
CFRYour named destination portSellerBuyer
CIFYour named destination portSellerSeller

More detail is on our export page.

Payment Terms and Lead Time

Payment terms are separate from the shipping term. We ask for a 60% deposit to start production and a 40% balance, as stated in the proforma invoice. Lead time depends on the stone, quantity and finish, and we confirm the schedule in your quotation.

How to Choose a Term

If you already work with a freight forwarder, FOB lets you control freight and insurance. If you prefer one price to your port, ask for CFR or CIF. Send us your destination port and requirements and we quote the terms you prefer. Read also documents needed to import natural stone.

Frequently asked questions

Which shipping term is your standard?

Our standard term is FOB Tanjung Priok, Jakarta, Indonesia.

Can you quote CIF to my port?

Yes. We can quote CFR or CIF to your destination port on request.

Who buys marine insurance under CFR?

The buyer. Under CIF the seller arranges it.

Are Incoterms the same as payment terms?

No. Incoterms describe delivery, freight and insurance. Payment terms describe when you pay. Ours are a 60% deposit and a 40% balance as stated in the proforma invoice.

Written by the Nurstones team from our product specifications and export process. Read more about Nurstones.

Stones Mentioned in This Guide

Factory-direct natural stone from Sukabumi, West Java, with export documents.