Understanding FOB, CIF, and DDP: Shipping Terms for Apparel Buyers

FOB — Free On Board

With FOB, the factory delivers your goods, cleared for export, onto the vessel at the origin port. From that point the cost and risk of freight, insurance, and destination handling are yours — usually managed through your own freight forwarder.

FOB gives you the most control over shipping cost and is common once a buyer has a forwarder they trust.

CIF — Cost, Insurance and Freight

With CIF, the supplier arranges and pays for freight and insurance to your destination port. You still handle import customs, duties, and delivery from the port onward. It is a middle ground — less for you to arrange than FOB, but you take over at the destination port.

DDP — Delivered Duty Paid

With DDP, the supplier delivers to your door with everything handled — freight, insurance, customs, and duties. It is the simplest for the buyer and the easiest way to know your true landed cost upfront, which is why many smaller and first-time orders choose it.

Which should you choose?

• New/smaller orders, want simplicity: DDP — one price, delivered
• Have a freight forwarder, want control: FOB — lowest freight cost
• Somewhere in between: CIF — supplier ships to your port

We quote all three

We prepare full export documentation and can quote FOB, CIF, or door-to-door DDP so you can compare landed costs and pick the terms that fit your setup.