WhatsApp NowFor a used SUV shipped from Shanghai, FOB and CIF typically differ by USD 1,500-2,800 in freight plus insurance. DDP can add 15-25% of value once destination duty and clearing are included. The right choice depends on your cash flow, risk appetite and whether you have a clearing agent at the destination port.
The Four Terms at a Glance
| Term | Seller covers | Buyer covers | Best for |
|---|---|---|---|
| EXW | Packaging at origin | Everything after pickup | Buyers with own freight |
| FOB | Loading at origin port | Freight, insurance, destination | Most vehicle programs |
| CIF | Freight + insurance to port | Destination costs | One-price convenience |
| DDP | Everything to your door | Almost nothing | Duty-paid delivery |
Real Lane Example: Shanghai to Mombasa
| Cost | FOB | CIF | DDP (indicative) |
|---|---|---|---|
| Vehicle (5A SUV) | $24,000 | $24,000 | $24,000 |
| Freight + insurance | Buyer pays | +$1,900 | Included |
| Port/clearing/duty | Buyer pays | Buyer pays | Included |
| Total to door (est.) | $26,800+ | $26,800+ | $30,500+ |
Risk Transfer Points
- EXW: risk transfers at the seller's warehouse
- FOB: when the goods are loaded on the vessel
- CIF: same as FOB for risk, but freight is pre-paid
- DDP: risk transfers at your door
When to Choose Each
- Choose FOB when you have a trusted freight forwarder - you control the lane
- Choose CIF for your first orders to keep one invoice simple
- Choose DDP for small batches or when destination clearing is your bottleneck
- Avoid EXW unless you already manage origin logistics
Case: First Order from Lagos
A Lagos importer took CIF on a 3-unit test batch: one invoice, freight pre-arranged, insurance included. Once volume passed 10 units, he switched to FOB with his own forwarder and cut per-unit logistics cost by about 7%.