FOB vs CIF vs DDP: choosing the right Incoterm for your furniture order
What FOB, CIF, and DDP actually mean for a furniture shipment, who pays for what at each stage, and which Incoterm suits a first-time importer versus a repeat buyer.
Incoterms in one minute
Incoterms define two things: where cost transfers from seller to buyer, and where risk transfers. For furniture, the practical question is always the same: who pays for the freight, the insurance, and the import duties?
FOB: the importer's default
FOB (Free On Board) means the factory delivers the goods onto the vessel at the port of shipment, pays the export clearance, and hands over from there. You own the sea freight, the insurance, and the import side.
FOB gives you full control of the shipping cost, which is why buyers with their own freight agent prefer it. The trade-off is that you carry more risk and more administration.
CIF: insurance and freight included
CIF (Cost, Insurance, and Freight) adds the sea freight and marine insurance to the price. Risk still transfers at the port of shipment, but the factory arranges and pays for the journey.
It is a middle option: less administration than FOB, but you still handle the import clearance and duties on arrival.
DDP: delivered, duties paid
DDP (Delivered Duty Paid) is the closest thing to a door-to-door price. The factory covers freight, insurance, import duties, and clearance, and delivers the goods ready for your warehouse.
For a first-time importer with no freight agent in the destination country, DDP is usually the least stressful option and the easiest to budget, because the price you are quoted is close to the price you pay.
Which one for your first container?
Our rule of thumb: if this is your first furniture order and you are not set up with a customs broker, ask for a DDP quote. Once you have shipped a container or two and have your own freight relationship, compare the FOB price and see if the difference covers your added work.
We return all three quotes within one business day, so you can compare landed costs directly rather than guessing.
Have a specific line in mind? Send quantities and get landed costs within one business day.
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