EXW, FOB or CIF — Which Should I Choose?
FOB Shantou is the usual choice for a first order: the factory handles export clearance and you control the freight.
What Each One Means in Practice
EXW: you arrange collection, export clearance and freight. lowest unit cost on paper, most work in reality. FOB: the factory delivers to the port and clears export; you book the ocean. CIF: the factory also pays freight to your port, which is simple but removes your control over the forwarder.
Why FOB Usually Wins
FOB keeps the freight visible and lets you use your own forwarder, which matters when something goes wrong in transit.
What Each Term Puts on You
EXW: you collect from Shantou, and you carry export clearance. FOB: the factory delivers to the port and clears export; you pay freight and insurance. CIF: the factory arranges freight and insurance to your port, but the risk still passes at the ship's rail.
For a first order, FOB is the clearest: the cost split is visible and the forwarder is yours.
Where the Risk Actually Moves
Under FOB, risk passes when the goods are on board, not when they reach your warehouse. Insurance is yours from that point, and it costs less than most buyers expect.
Under CIF the factory arranges insurance, but the cover is minimum — 110 % of the invoice, institute clauses C. If the pack is fragile, buy your own.
Frequently Asked
Which is lowest unit cost?
EXW on paper, but the hidden cost is export clearance.
Can you quote CIF?
Yes, to your nearest port.
Who handles insurance?
On FOB, you do; on CIF, we do, at minimum cover.
Which is cheapest?
EXW looks cheapest and usually is not, once export clearance and inland haulage are added.
Can you quote DDP?
Yes, through a forwarder, as an indicative landed cost.
Still Deciding?
Send the capacity, neck and quantity — we come back with a price, packing data and lead time within one business day.