Quick Definitions

  • FOB (Free On Board): seller delivers the vehicle to the ship at the Chinese export port. Risk and freight cost transfer to you from that point.
  • CIF (Cost, Insurance, Freight): seller's price includes vehicle + freight + marine insurance to the destination port. Risk transfers when goods are loaded, but the seller pays freight and insurance.

What's Included

Cost item FOB CIF
Vehicle price
China inland transport
China export customs
SGS / BV inspection Usually buyer Usually included
Marine insurance Buyer
Ocean freight Buyer
Destination port handling Buyer Buyer
Destination customs duty Buyer Buyer
Destination inland Buyer Buyer

When FOB Makes Sense

  • You have a freight forwarder at destination with better rates than the seller
  • You're consolidating multiple shipments and want full schedule control
  • You're sophisticated enough to handle marine insurance separately

If you import < 50 vehicles a year, FOB usually costs you more than it saves.

When CIF Makes Sense (most cases)

  • You want a predictable landed cost at port
  • You don't have a trusted freight forwarder
  • You want the seller motivated to deliver in good condition (they're responsible until destination)

Watch For Hidden Costs in "Cheap" FOB

A "cheap" FOB can become an expensive CIF in disguise:

  1. Freight rate spikes. Ocean rates in 2026 are volatile. Day-1 quote may be 20% higher on day-30.
  2. Hidden surcharges. BAF (Bunker Adjustment), CAF (Currency Adjustment), THC (Terminal Handling) — can add 8–15%.
  3. Demurrage / detention. Free time at port is typically 7 days; after that $30–80/vehicle/day.

Starvia's Default

We quote CIF as default. FOB on request. CIF prices are itemized so you see exactly what you're paying:

  • Vehicle FOB price
  • China inland + export customs
  • Marine insurance (~1% of CIF)
  • Ocean freight (RoRo or container)
  • Port loading / lashing

No hidden surcharges. Day-1 quote = day-30 quote.