Guide · Incoterms
CIF vs FOB for Sugar Imports: Cost Comparison
The Incoterm decides who pays freight and insurance — and it's the main reason two sugar quotes can look wildly different. Here's FOB, CFR and CIF for sugar, and how to compare offers fairly.
What each term covers
FOB (Free On Board)
Freight paid by: BuyerSeller delivers on board at the load port (e.g. Santos). Buyer pays ocean freight, insurance and onward costs.
CFR (Cost & Freight)
Freight paid by: Seller (freight) / Buyer (insurance)Seller pays freight to the destination port. Buyer arranges insurance and takes risk once loaded.
CIF (Cost, Insurance & Freight)
Freight paid by: SellerSeller pays freight and marine insurance to the destination port. Simplest all-in price for the buyer.
Comparing quotes on a like-for-like basis
Never compare a FOB price against a CIF price directly. To compare fairly, take the FOB price and add your own ocean freight and insurance to the same destination port — then set it against the CIF price. Only then are you comparing the true landed cost. Freight rates swing with route, vessel availability and season, so a CIF quote also locks that risk with the seller.
Which should you choose?
- Choose CIF for a simple, all-in price to your port — ideal for newer importers or one-off shipments.
- Choose FOB (or CFR) if you have freight contracts or want to control logistics and insurance yourself.
Get a quote — in your preferred Incoterm
Duna Trading quotes Brazilian ICUMSA 45 on FOB (Santos / Paranaguá), CFR or CIF to your destination port. Tell us your Incoterm and quantity and the desk reverts with a price.