Shipping and documents
Choosing between FOB, CFR and CIF for your first Indonesian shipment
The three terms most buyers use differ in who books the vessel, who insures the cargo and what is on the invoice.
What buyers should know
Supply, quality and freight move together. When one of them changes at origin, it usually shows up in offers two to four weeks later, so it pays to ask early and to fix the specification in writing.
In short
- Ask for the lot analysis, not only the standard specification.
- Confirm the shipment window before you confirm the price.
- Agree on the documents your customs office needs.
A sample tells you about one bag. A lot analysis tells you about the container.
| Term | Seller pays freight | Seller pays insurance | Risk passes to buyer | Typical use | Documents handed over |
|---|---|---|---|---|---|
| FOB | No | No | On board at the loading port | Buyers with their own forwarder | Bill of lading, invoice, packing list, certificate of origin |
| CFR | Yes | No | On board at the loading port | Buyers who insure under an open policy | Same as FOB, freight prepaid |
| CIF | Yes | Yes | On board at the loading port | First shipments and smaller importers | Same as CFR, plus the insurance certificate |