CNF vs CIF vs FOB Comparison

The biggest differences are therefore related to ocean freight control and cargo insurance.

FOB vs CIF

The main difference between FOB and CIF is who arranges international transportation.

Under FOB:

Buyer controls ocean freight.

Under CIF:

Seller arranges ocean freight and cargo insurance.

For example, suppose you purchase machinery from a supplier in Qingdao.

FOB Qingdao

The supplier gets the machinery onboard the vessel.

Your freight forwarder then handles:

Qingdao → Los Angeles → Customs Clearance → Delivery

CIF Los Angeles

The supplier arranges transportation:

Qingdao → Los Angeles Port

After arrival, you or your freight forwarder handles customs clearance, destination charges and delivery.

For experienced importers, FOB can provide better visibility and control over freight costs.

CNF vs CIF

CNF/CFR and CIF are very similar.

The main difference is:

CNF / CFR

Ocean freight included.

Insurance not included.

CIF

Ocean freight included.

Insurance included.

Therefore:

CIF = CFR + Insurance

Importers should still check exactly what insurance coverage is being provided because cargo insurance policies can have different limits, exclusions and coverage conditions.

CNF vs FOB

Another common comparison is CNF vs FOB.

Under FOB, the buyer arranges international transportation.

Under CNF, the seller arranges and pays for ocean transportation to the destination port.

Por ejemplo:

FOB Shanghai

Seller responsibility:

Factory → Shanghai Port → Vessel

Buyer responsibility:

Shanghai → USA → Customs → Delivery

CNF Los Angeles

Seller responsibility:

Factory → Shanghai Port → Ocean Freight → Los Angeles

Buyer responsibility:

Destination Charges → Customs → Delivery

This difference can significantly affect how much control an importer has over freight rates, shipping lines, sailing schedules and destination charges.

Which Is Cheaper: FOB, CIF or CNF?

There is no shipping term that is automatically cheaper.

You need to compare the total landed cost.

For example, a CIF quotation may initially appear cheaper because international freight is already included.

However, destination charges may still apply.

A proper comparison should include:

**Product Cost

• China Local Charges
• Transporte marítimo
• Seguro de carga
• Gastos de destino
• Despacho de aduanas
• Duties & Taxes
• Final Delivery**

The lowest supplier quotation is therefore not necessarily the lowest total shipping cost.

Why Many Importers Prefer FOB When Shipping from China

For established importers, FOB is commonly used because it allows the buyer to select their own freight forwarder.

This can provide greater control over:

• Compañía naviera
• Freight rate
• Vessel schedule
• Tiempo de tránsito
• Container booking
• Destination agent
• Despacho de aduanas
• Transporte por carretera
• Entrega en almacén

A freight forwarder can coordinate the shipment from the Chinese port through to the final destination.

BRF SHIPPING can assist with transportation from major Chinese ports including:

• Qingdao
• Shanghái
• Ningbo
• Shenzhen
• Guangzhou
• Tianjin
• Xiamen
• Dalian

Services can include ocean freight, air freight, customs clearance, warehousing, cargo consolidation and door-to-door delivery.

When Should You Choose CIF?

CIF may be suitable when:

• You are new to importing
• Your supplier has competitive ocean freight rates
• You do not have a freight forwarder in China
• You want the supplier to arrange international transportation
• Cargo insurance is required

However, always request a breakdown of destination charges before confirming the order.

When Should You Choose CNF / CFR?

CNF/CFR may be appropriate when:

• The supplier can obtain competitive ocean freight
• You prefer to arrange your own insurance
• You have a customs broker or freight forwarder at destination
• You are comfortable managing destination charges

Because insurance is not normally included, importers should consider arranging their own marine cargo insurance.

When Should You Choose FOB?

FOB can be suitable when:

• You already have a freight forwarder
• You want control over shipping arrangements
• You want to compare freight rates
• You want visibility over destination charges
• You regularly import goods from China

For many regular importers, FOB provides a good balance between supplier responsibility in China and buyer control over international logistics.

Example: Shipping a 40HQ Container from China to USA

Suppose a customer purchases one 40HQ container of goods from a Chinese factory.

Option 1 — FOB Qingdao

Supplier handles:

Factory → Qingdao Port → Export Customs → Vessel

BRF SHIPPING can handle:

Ocean Freight → USA Customs Clearance → Truck Delivery

Option 2 — CNF Los Angeles

Supplier handles:

Factory → Qingdao → Ocean Freight → Los Angeles

Importer handles:

Insurance → Destination Charges → Customs → Delivery

Option 3 — CIF Los Angeles

Supplier handles:

Factory → Qingdao → Ocean Freight + Insurance → Los Angeles

Importer handles:

Destination Charges → Customs Clearance → Duties → Delivery

This example demonstrates why understanding Incoterms is important before comparing supplier quotations.

FOB, CIF and CNF Do Not Usually Include Import Duties

A common misunderstanding is that CIF or CNF represents a complete door-to-door price.

Usually, it does not.

Depending on the agreed contract and applicable Incoterm, importers may still need to pay:

• Tasas de la terminal de destino
• Customs broker fees
• Import duties
• VAT / GST / sales-related import taxes
• Port storage
• Demurrage
• Detention
• Entrega de contenedores
• Warehouse unloading

If you want the logistics provider to manage transportation all the way to your address, ask about:

Door-to-Door, DAP, DDP or other appropriate delivery solutions.

FOB vs CIF vs CNF: Which Is Best for Shipping from China?

For many experienced importers:

FOB + independent freight forwarder can provide greater control over the logistics chain.

For first-time importers:

CIF or CNF may appear simpler because the supplier arranges international transportation.

But the right option depends on:

• Shipment volume
• Product value
• País de destino
• Puerto
• Freight market
• Supplier freight rate
• Gastos de destino
• Requisitos aduaneros
• Insurance requirements
• Dirección de entrega definitiva

Before choosing an Incoterm, compare the complete transportation cost rather than only the supplier’s quoted price.

Preguntas frecuentes

Is CNF the same as CFR?

In everyday shipping practice, CNF is frequently used to describe Gastos de envío y transporte. The official Incoterms abbreviation is CFR.

Does CNF include insurance?

Normally, no.

The seller pays ocean freight, while cargo insurance should be arranged separately if required.

Does CIF include insurance?

Yes. CIF requires the seller to arrange the insurance specified by the applicable Incoterms rule.

Does FOB include shipping?

FOB normally includes transportation up to the agreed port of shipment and delivery onboard the vessel.

International ocean freight is normally arranged by the buyer.

Is CIF door-to-door?

No.

CIF normally covers transportation to the named destination port rather than delivery to the buyer’s warehouse.

Which is better, FOB or CIF?

FOB can provide greater freight control, while CIF can simplify international freight arrangements for importers who prefer the seller to organize transportation.

The best choice depends on your shipment and logistics capability.

Who pays customs duty under CIF?

The importer normally handles import customs clearance, duties and taxes unless otherwise agreed under the sales contract.

Can BRF SHIPPING handle FOB shipments from China?

Yes. BRF SHIPPING can coordinate international freight after the supplier completes the FOB delivery requirements, including ocean freight, customs clearance, warehousing and final delivery depending on the destination.

Get a Shipping Quote from China

Buying goods from China under FOB, CIF or CNF terms?

BRF SHIPPING can help you compare the logistics cost and determine the most suitable transportation solution.

For a quotation, provide:

• Nombre del producto
• Lugar de recogida
• Port of loading
• Puerto de destino
• Dirección de entrega definitiva
• Total cartons or pallets
• Peso bruto
• Volumen de carga
• Container size for FCL shipments
• Current Incoterm: FOB / CIF / CFR / EXW

We can provide solutions for:

FCL Shipping | LCL Shipping | Air Freight | China Warehousing | Customs Clearance | DDP / DDU | Door-to-Door Delivery