CIF and FOB are the two Incoterms you will meet most often when buying fuel internationally. Choosing the right one determines who arranges shipping, who carries risk, and how the transaction is structured. Here is what each means for a fuel buyer.
CIF — Cost, Insurance, Freight
Under CIF, the seller delivers the product to your named discharge port (or "any safe world port", ASWP), and the seller arranges and pays for freight and marine insurance to that point. CIF suits buyers who want delivered product without chartering vessels or managing logistics. The headline price is higher because it bundles shipping and insurance.
FOB — Free On Board
Under FOB, the seller places the product on board the vessel (or makes it available in-tank at a terminal such as Rotterdam), and the buyer arranges and pays for onward freight and insurance. FOB suits buyers and traders who have their own shipping or want control over the voyage. In the Rotterdam market, FOB often involves in-tank mechanisms — see TTO, TTV & TTT explained.
| Aspect | CIF | FOB |
|---|---|---|
| Who arranges freight | Seller | Buyer |
| Who arranges insurance | Seller (to discharge port) | Buyer |
| Best for | Buyers wanting delivered product | Buyers with their own shipping |
| Price basis | Includes freight & insurance | Product only, at load |
Which should you choose?
If you do not want to charter vessels or manage marine logistics, choose CIF to your port. If you have freight capability or want to optimise the voyage, choose FOB. LinkPort quotes both — the full sequence for each is on our trading procedures page.
Frequently asked questions
Is CIF more expensive than FOB?
The CIF price is higher because it includes freight and insurance to your port. FOB shows a lower product price but you pay shipping separately, so compare on a landed-cost basis.
What is "CIF ASWP"?
"ASWP" means "any safe world port" — a CIF offer where the destination is flexible to any safe port you nominate. Confirm the exact port in the contract.