FOB vs. CIF: What’s the Difference?
FOB — Free On Board — Under FOB Incoterms® 2020, SOHI delivers the goods on board the buyer-nominated vessel at the agreed Vietnamese port of shipment. Risk transfers to the buyer once the goods are on board the vessel. The buyer normally arranges and pays for the international ocean freight and cargo insurance from that point. FOB may suit importers that already work with their own freight forwarder or have established international shipping arrangements.
CIF — Cost, Insurance and Freight — Under CIF Incoterms® 2020, SOHI arranges and pays for ocean freight and cargo insurance to the named destination port. However, the transfer of risk is different from the payment of freight: risk transfers to the buyer once the goods are on board the vessel at the port of shipment. CIF may suit buyers who prefer SOHI to obtain the international freight and insurance quotation as part of the commercial offer. CIF does not automatically include import customs clearance, import duties, taxes or every charge that may arise at the destination — the quotation should clearly state what is included and excluded.
Which Should You Request: FOB or CIF?
FOB may be practical if you already have a freight forwarder or shipping arrangement, prefer to control international freight directly, or want to compare SOHI's product price separately from your own freight cost.
CIF may be practical if you want SOHI to check ocean freight to your destination port, prefer to review product, freight and cargo insurance together in the quotation, or do not yet have your own freight arrangement from Vietnam.
If you are comparing options, you can ask SOHI to discuss both FOB and CIF for the same product quantity and packing configuration.
What SOHI Needs to Prepare Your Quotation
Target quantity; destination country and port; preferred quotation basis (FOB, CIF, or both for comparison); preferred charcoal size or size range, if applicable; packing preference (10 kg, 15 kg cartons, or another configuration for discussion); private-label requirement, if applicable; approximate order or shipment timeline.
SOHI's standard commercial reference is approximately 10–11 metric tons for one 20ft container, subject to final packing and loading plan. If you are not ready for a commercial container order, see our guide to white charcoal samples and trial quantities.
SOHI does not publish a fixed FOB or CIF price on this website. Quotations are prepared for the specific shipment because product selection, packing, quantity, ocean freight and shipping conditions can change.
What a White Charcoal Export Quotation Should Show
Product description; confirmed or reference charcoal size; packing configuration; order quantity and estimated net weight; unit price per metric ton; quotation basis (e.g. FOB named Vietnamese port or CIF named destination port); applicable Incoterms® 2020 rule; estimated production or shipment window; payment terms for discussion; quotation validity; any relevant commercial notes or conditions.
For a CIF quotation, the commercial offer should also identify the ocean freight and cargo insurance basis included in the quoted price, together with an estimated transit time where available. Import clearance, import duties, taxes and destination charges that are not included in the quotation remain outside the quoted amount.
Why CIF Prices Can Change
A CIF quotation contains more than the product price. International ocean freight can change according to shipping route, carrier availability, vessel schedule, dangerous-goods acceptance, container availability, seasonal demand, and market conditions at the time of booking. For this reason, a CIF quotation normally has a validity period and may need to be reconfirmed before booking if freight conditions change.
Dangerous-Goods Shipping Requirements
Charcoal is subject to international dangerous-goods transport requirements. For international sea transport, vegetable-origin charcoal is handled as UN 1361, Class 4.2 under the applicable IMDG Code requirements. Applicable dangerous-goods documentation, packing and carrier acceptance are therefore confirmed as part of the shipping arrangement for each shipment. For more detail, see our guide to shipping charcoal as dangerous goods.
From Quotation to Shipment
- Send Your Requirement — quantity, destination port, preferred charcoal size, packing requirement and whether you need FOB, CIF or both.
- Review the Commercial Requirement — SOHI reviews the requested product configuration, quantity and packing.
- Check Shipping Conditions — for CIF requests, freight availability and dangerous-goods acceptance for the destination route are reviewed.
- Receive and Review the Quotation — sets out the applicable product, quantity, packing, price basis, shipment terms and validity.
- Confirm Commercial Terms — once agreed, payment and shipment arrangements are confirmed in the applicable commercial documents.
- Prepare the Order — product selection, sorting, packing and shipment preparation are coordinated according to the confirmed order requirements.
- Arrange Shipment — applicable dangerous-goods requirements and shipping arrangements are completed; shipment details and relevant shipping documents are shared with the buyer.
Buyer FAQ
Does SOHI publish fixed FOB or CIF white charcoal prices?
No. SOHI does not publish fixed FOB or CIF price figures on this website. Quotations are prepared for the specific order based on quantity, product selection, packing and current shipment conditions.
Can I request both FOB and CIF quotations to compare?
Yes. Provide the same quantity, size and packing requirements and indicate that you would like to compare FOB and CIF options — this allows you to compare SOHI's shipping option with your own freight arrangement.
Does CIF include cargo insurance?
Yes. Under CIF Incoterms® 2020, the seller arranges the applicable cargo insurance together with freight to the named destination port. The insurance basis and any additional coverage requirements should be confirmed in the commercial quotation or contract.
Does CIF mean SOHI carries the shipping risk until the goods arrive at my port?
No. Under CIF Incoterms® 2020, SOHI arranges and pays the freight and insurance to the named destination port, but the risk of loss or damage transfers to the buyer when the goods are on board the vessel at the port of shipment. This distinction between cost and risk is an important part of CIF.
Does CIF include all destination charges and import taxes?
No. CIF does not automatically include the buyer's import customs clearance, import duties, taxes or all destination-side charges. The quotation should identify the commercial basis clearly so the buyer can review any additional destination costs with their local forwarder or customs representative.
What destination information should I send for a CIF quotation?
Please send the destination country and exact seaport, together with your target quantity, packing preference and preferred charcoal size — the exact port is important because freight rates and dangerous-goods acceptance can vary by route.
How quickly can SOHI prepare a quotation?
Please send the complete quantity, packing, preferred size and destination-port information. For CIF requests, quotation timing also depends on receiving current freight information and confirming shipping availability for the requested route.