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:
- Freight rate spikes. Ocean rates in 2026 are volatile. Day-1 quote may be 20% higher on day-30.
- Hidden surcharges. BAF (Bunker Adjustment), CAF (Currency Adjustment), THC (Terminal Handling) — can add 8–15%.
- 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.