← Back to Insights
Logistics5 min read

FOB vs. CIF: what changes for a Gulf-based buyer

Almost every quote we see from a Turkish factory is priced either FOB (Free on Board) or CIF (Cost, Insurance, and Freight). The two-letter difference changes who's responsible for what between the factory floor and your port — and it's worth understanding before you compare prices, not after.

FOB: the supplier's responsibility ends at the Turkish port

Under FOB, the factory's price covers getting the goods loaded onto the vessel at a named Turkish port — usually Istanbul, Mersin, or İzmir. From that point on, ocean freight, insurance, and destination-side charges are yours to arrange. FOB quotes are typically the lower headline number, which makes them look attractive — but only if you already have a freight forwarder who can quote the rest reliably.

CIF: the supplier arranges freight and insurance to your port

Under CIF, the factory's price already includes ocean freight and minimum insurance to your named destination port. It's a simpler number to compare across suppliers, and useful if you don't yet have your own forwarding relationship. The trade-off: you have less visibility into the freight cost baked into the price, and less control over carrier or routing choices.

What we usually recommend

If you already ship regularly and have a forwarder you trust, FOB usually works out cheaper and gives you more control. If this is a first order, or your volumes don't yet justify your own freight contracts, CIF removes a layer of coordination you don't need to take on yet. Either way, ask for both prices on the same quote — it's the fastest way to see what the freight leg is actually costing you.

Incoterms carry legal weight beyond pricing — confirm the exact rules version (e.g. Incoterms 2020) in writing on your purchase order.