FOB (Free On Board) and CIF (Cost, Insurance, and Freight) are the two Incoterms most commonly used in primary aluminum trade. The right choice depends on how much of the shipping process you want to manage yourself.
FOB: You Control the Freight
Under FOB, the seller’s responsibility ends once the ingots are loaded onto the vessel at the origin port. From that point, the buyer arranges and pays for ocean freight and insurance. This suits buyers who already have freight forwarder relationships and want more control over routing and cost.
CIF: The Seller Handles Shipping
Under CIF, the seller books the vessel, pays freight, and arranges minimum insurance coverage through to the destination port. This is often simpler for first-time importers or buyers without an existing logistics setup, at the cost of less control over carrier choice.
Making the Call
If you import metal regularly and have established freight relationships, FOB usually gives you better rates over time. If this is a new trade lane for you, CIF can reduce the number of moving parts you need to manage on your first few orders.