Buyer guide — Incoterms
FOB vs CIF coal contracts
The Incoterm decides who pays for what and, more importantly, who carries the risk when something goes wrong in transit. Choosing the wrong one is expensive.
Ex-works and FOR
Ex-works: you collect at the mine gate and carry everything from there. FOR (free on rail/road): we load your nominated transport. Both suit buyers with their own established logistics.
FOB
Free on board: we deliver to the port and load the vessel; risk transfers when the cargo is on board. You arrange and pay ocean freight and marine insurance.
CIF
Cost, insurance and freight: we deliver to your named destination port with freight and insurance paid. Simplest for buyers without shipping desks, and the term most first-time importers should use.
DAP / delivered to plant
We deliver to your gate. Used for regional road deliveries into South Africa, Zambia, Botswana, the DRC and Malawi — this is what most African industrial buyers actually want.
Frequently asked questions
- Is CIF more expensive than FOB?
- The headline number is higher because it includes freight and insurance, but total landed cost is often similar or lower because the seller books freight at contract rates.
- Which Incoterm should a first-time buyer use?
- CIF for sea shipments, or delivered-to-plant for regional road deliveries. Both minimise your operational exposure.
Related — Buyer guides
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