When you request a cooking oil quotation, the first question your supplier asks is "FOB or CIF?" Choosing the right Incoterm decides who arranges the ocean freight, who insures the cargo, and exactly where your risk begins. Here's a plain-English guide for edible oil buyers importing from Thailand.
What FOB means (Free On Board)
Under FOB Bangkok / Laem Chabang, we deliver your oil — in flexitank, drums or containers — loaded onto the vessel at the Thai port. From that point, the freight, marine insurance and destination charges are yours to arrange.
FOB gives you full control of the shipping leg. If you have a freight forwarder or a contracted shipping line, FOB is usually the cheapest landed cost because you negotiate ocean freight directly.
What CIF means (Cost, Insurance & Freight)
Under CIF [your port], we arrange and pay the ocean freight and marine insurance to your destination port. You take over at the destination for customs clearance, duties and inland delivery.
CIF is the simplest option for newer importers: you get one all-in price to your port and don't have to manage carriers or insurance from the Thai side.
FOB vs CIF at a glance
| Item | FOB | CIF |
|---|---|---|
| Ocean freight | Buyer arranges & pays | Seller arranges & pays |
| Marine insurance | Buyer | Seller (minimum cover) |
| Risk transfers | On board at Thai port | On board at Thai port* |
| Best for | Buyers with a forwarder | First-time / hands-off buyers |
| Price quoted | Lower (port only) | Higher (includes freight) |
*Under CIF the seller pays freight to destination, but risk still passes when goods are loaded in Thailand — so adequate insurance matters.
Which should you choose?
- Choose FOB if you import regularly, have a freight forwarder, or want to consolidate shipping with other cargo. You'll typically get the lowest total landed cost.
- Choose CIF if this is an early order, you want a single delivered price to budget against, or you don't yet have shipping contracts at origin.
- CFR / CNF is the same as CIF but without insurance — choose it only if you self-insure.
A note on FCA, DAP and DDP
For containerized drums or bottled cartons, some buyers prefer FCA (handover at our warehouse). DAP/DDP (delivered to your door) is possible for established partners but adds destination-side complexity and cost. For most edible oil trade, FOB and CIF cover the vast majority of orders.
Get an FOB and CIF price side by side
Not sure which works out cheaper for your port? Send us your destination and volume and we'll quote both FOB and CIF so you can compare landed cost. See also our guide to importing cooking oil from Thailand and shipping methods compared. Request a quote.