FOB, CFR or CIF? Choosing Shipping Terms When Buying from Turkey
When you buy food or commodities from an exporter in Turkey, the price you are quoted only makes sense once you know the shipping term behind it. A price “FOB Mersin” and a price “CIF Lagos” can look very different, yet cover different costs and risks. This guide explains the three terms you will see most often – FOB, CFR and CIF – so you can compare offers properly and choose the one that suits your business.
What are Incoterms?
Incoterms are standard trade rules published by the International Chamber of Commerce (ICC). The current version is Incoterms 2020. Each term is a three-letter code that says who pays for transport, insurance and export clearance, and at which point the risk of loss or damage passes from the seller to the buyer. Always write the term, the named port and the Incoterms version in your contract, for example: “CFR Durban, Incoterms 2020”.
FOB – Free on Board
Under FOB, the seller clears the goods for export and delivers them on board the ship at the named port in Turkey. From that moment, the risk is yours, and you pay for the sea freight, insurance, unloading and import clearance at your end.
- Good for: experienced importers with their own freight forwarder or shipping line contracts.
- Advantage: you control the shipping booking and can often negotiate better freight rates.
- Watch out for: you must book the vessel on time; if your ship is late, the goods wait at the port and storage costs can build up.
CFR – Cost and Freight
Under CFR, the seller also books and pays for the sea freight to your destination port. However, the risk still passes to you when the goods are loaded on board in Turkey – not when they arrive. This means you should arrange your own cargo insurance for the sea journey.
- Good for: buyers who want the supplier to handle shipping but prefer to choose their own insurer.
- Advantage: one price covers the goods and the freight, which makes budgeting simpler.
- Watch out for: charges at the destination port (unloading, terminal handling, container return) are usually still yours.
CIF – Cost, Insurance and Freight
CIF is the same as CFR, except that the seller also buys insurance for the sea journey in your favour. Under Incoterms 2020, the minimum cover for CIF is the basic Institute Cargo Clauses (C), for 110% of the contract value. If you want wider “all risks” cover, ask for Institute Cargo Clauses (A) in the contract, or buy extra insurance yourself.
- Good for: first-time importers who want the supplier to arrange as much as possible.
- Advantage: the goods, freight and insurance are all included in one price.
- Watch out for: as with CFR, the risk passes to you once the goods are on board in Turkey, so make sure the insurance certificate is in your name or can be transferred to you.
FOB vs CFR vs CIF at a glance
| FOB | CFR | CIF | |
|---|---|---|---|
| Export clearance in Turkey | Seller | Seller | Seller |
| Sea freight | Buyer | Seller | Seller |
| Sea insurance | Buyer | Buyer | Seller (minimum cover) |
| Risk passes to buyer | On board in Turkey | On board in Turkey | On board in Turkey |
| Import clearance and duties | Buyer | Buyer | Buyer |
Which term should you choose?
There is no single best term – it depends on how much of the logistics you want to manage:
- If you already work with a freight forwarder and import regularly, FOB usually gives you the most control over cost and timing.
- If you want the supplier to book the ship but you have a good local insurer, choose CFR.
- If this is one of your first imports and you want everything arranged for you, CIF is the simplest.
When comparing offers from different suppliers, always compare them on the same term. A FOB price will look lower than a CIF price, but once you add freight and insurance the CIF offer may be cheaper overall.
A note on containers
FOB, CFR and CIF were designed for sea transport. For goods shipped in containers, the ICC suggests the related terms FCA, CPT and CIP, because containers are usually handed over at the terminal before they are loaded on the ship. In everyday food trade, FOB, CFR and CIF are still very widely used for containers; just make sure you and your supplier agree exactly where the handover happens.
Turkish ports you are likely to see
Most Turkish exports leave through large container ports such as Mersin, Istanbul (Ambarlı) and İzmir. Suppliers located inland – like us in Konya – truck the goods to the port, so the port named in a FOB quote is where the goods are loaded on the ship, not where they are produced.
Shipping terms and your documents
Whatever term you choose, you will need the right paperwork to collect your goods. Under CFR and CIF, the bill of lading and (for CIF) the insurance certificate are sent to you or your bank, usually together with the commercial invoice, packing list and certificate of origin. Our sunflower oil import guide explains the full list of documents to expect.
Buying from BS Sariyavuz Export
We quote on the shipping term that suits you. Tell us the product, quantity, packaging and destination port, and we can prepare a FOB, CFR or CIF offer. Popular products include sunflower oil, Turkish lentils, durum wheat pasta and wheat flour – see everything in our shop.
Contact us on WhatsApp or by phone at +1 727 201 2398, or through our contact page. We are available 08:00–17:00 every day, including weekends.
Frequently asked questions
Is CIF always more expensive than FOB?
The CIF price is higher on paper because it includes freight and insurance, but it is not always more expensive overall. Compare the CIF price with the FOB price plus the freight and insurance you would pay yourself.
When does the risk pass to me under CIF?
Under CIF, the risk passes to the buyer when the goods are loaded on board the ship in the port of shipment, even though the seller has paid for freight and insurance.
Who pays import duty?
Under FOB, CFR and CIF, the buyer pays import duties, taxes and customs clearance in the destination country.
