CIF or FOB  for Sea Freight shipments ex China - What is best ?
 

CIF = Cost, Insurance & Freight. This means your supplier is responsible for paying for all charges, including Ocean Freight, ex origin to destination port. You will pay the applicable destination charges
 

FOB = Freight or Free on Board. This means your supplier pays all local charges until freight is on board the vessel. You will be responsible for Ocean freight to destination port together with the applicable destination charges.
 

Now, the dilemma is "what is the most cost effective method". The answer in relation to Sea Freight LCL shipments ex China is ALWAYS FOB. Never, ever purchase on CIF Terms. Pay the Ocean Freight separately on FOB terms and never ask your supplier for CIF price.
 

On CIF terms your supplier will always secure the most cost effective method for Sea Freight. They will always pay a minimal Ocean Freight figure which ultimately is subsidised (and more) by you in the level of destination charges you will have to pay. On FOB terms you may feel as though you are paying more Ocean Freight but believe us you will save enormously in the level of UK charges. The larger the freight the higher the figure you will save on buying FOB.

We would be pleased to quote you for your FOB shipments ex China. If rates are ultimately acceptable we can then give you our China Partner details with whom your supplier should arange the shipment.