FOB or CIF for stone — which should you choose?
The difference is not price but who books the vessel, who insures, and who you call when something goes wrong. Stone is heavy cargo with a high freight share, so this choice deserves more thought than for most goods.
Where is the line between FOB and CIF?
FOB is free on board at the port of loading: risk passes to you once the goods are on the vessel, and you arrange freight and insurance. CIF has the supplier deliver to the destination port and insure, with risk still passing at loading, but transport organised by them. In one sentence: CIF buys you a service to the port, FOB buys you goods loaded on board.
Why do two suppliers quote similar FOB and CIF numbers?
Because the freight inside a CIF quote often comes from the supplier's long-term rate, which may genuinely be lower than what you can find; or the opposite, with margin added on freight. The test is simple: ask them to split CIF into FOB price plus freight plus insurance, then compare that freight against the market rate you obtained yourself. A quote that cannot be split usually does not want to be compared.
Who controls the vessel, and why does it matter?
Whoever controls the vessel controls schedule and routing. Under CIF, if sailings keep slipping you can only wait for notice. Under FOB you choose the carrier, direct or transhipment, fast or slow vessel. For a project with a fixed installation date, that control has value in itself.
Does it matter who insures, and for how much?
Yes. Under CIF the supplier insures, usually on minimum cover, for contract value plus ten percent. Stone is heavy and breakable, and minimum cover may not pay for damage caused by careless handling. If you want broader cover, specify the risks and the insured amount in the contract, or go FOB and insure on your own terms.
When something goes wrong, do you claim against the carrier or the supplier?
It depends which leg failed. Shortage, colour deviation or specification mismatch before loading is the supplier. Loss or damage at sea is the insurer, with liability determined by the bill of lading terms. Under CIF you will feel like claiming against the supplier, but the transport leg belongs to the carrier — the supplier only booked it. Getting this straight saves a lot of circular argument.
When to choose FOB, when CIF?
Choose FOB if you have a forwarder you trust, a long relationship at the destination port, or want control of the schedule. Choose CIF for a first import, a smaller destination port, no forwarder of your own, or when you want one party to handle everything. For small consolidated shipments, letting the supplier arrange is often cheaper than assembling it yourself.
The most overlooked cost: charges at destination
CIF ends at the destination port and excludes discharge, devanning, storage and detention. Those are charged locally and can exceed the ocean freight. Before signing, ask who bears post-arrival charges and roughly what level they are at. That question is worth more than arguing over a few dollars of freight.