FOB small - Free On Board

With a FOB price, the Indian exporter delivers goods on board the vessel at the origin port (Chennai, JNPT or Mundra). From the moment the container is loaded on the vessel, all risks and additional costs transfer to the buyer.

FOB small - What the Exporter Pays

Origin → On board vessel
  • Rice price at mill
  • Inland transport to origin port
  • Origin port handling (THC origin)
  • Export documents (phytosanitary, COO, APEDA)
  • Indian export customs clearance

FOB small - What the Buyer Pays

On board vessel → Cotonou
  • Sea freight (Chennai → Cotonou)
  • Marine insurance (optional but advised)
  • Destination port handling (THC Cotonou)
  • Import customs clearance in Benin
  • Inland transport from port

CIF small - Cost, Insurance and Freight

With a CIF price, the Indian exporter covers the sea freight and marine insurance up to the port of Cotonou. The price you see already includes these elements. Upon arrival at the port, risks transfer to the buyer.

CIF small - What the Exporter Pays

India → Port of Cotonou (included)
  • Rice price at mill
  • Inland transport to Indian port
  • Origin THC
  • Export documents
  • Sea freight to Cotonou
  • Marine insurance

CIF small - What the Buyer Pays

From arrival at Cotonou
  • Destination THC (Cotonou)
  • Import customs clearance in Benin
  • Port handling charges
  • Inland transport from port
  • ECOWAS import duties

Real Total Cost Calculation: FOB vs CIF (1×20ft FCL, IR-64 Parboiled 25MT)

Here is a realistic example for a 25 metric tonne container of IR-64 parboiled 5% from Chennai to Cotonou:

FOB Option - Total Cost to Buyer

Rice FOB Chennai price (25 MT × $340/MT)$8,500
+ Sea freight Chennai → Cotonou (estimated)$1,400
+ Marine insurance (0.3% of cargo value)$30
+ Destination THC Cotonou$180
+ Import clearance + handling charges$350
= ESTIMATED TOTAL COST~$10,460

CIF Option - Total Cost to Buyer

Rice CIF Cotonou price (25 MT × $400/MT)$10,000
+ Destination THC Cotonou$180
+ Import clearance + handling charges$350
= ESTIMATED TOTAL COST~$10,530

In this example, both options arrive at a similar total cost. The key difference is therefore not price, but control and simplicity.

Final Comparison: FOB vs CIF for Beninese Importers

FactorFOBCIF
Quoted priceLower (freight not included)Higher (freight + insurance included)
Real total costSimilar (you pay freight separately)Similar (freight included in price)
Freight controlYou choose your forwarder and negotiate freightExporter chooses the shipping line
SimplicityYou manage freight + insurance yourselfAll-inclusive price to port
Transit riskYour risk from loadingExporter's risk to Cotonou
Recommended forExperienced importers with an established forwarderNew importers or small teams
Freight negotiationPossible - especially with volumeNo - freight set by exporter

Our Recommendation for Beninese Importers

If you are placing your first or second container order and do not yet have a trusted freight forwarder in Cotonou: choose CIF. Simplicity wins small - the exporter manages the freight, you receive the goods at port. If you import regularly (3+ containers per year) and have an established forwarder: negotiate FOB for freight control and potentially lower costs by dealing directly with the shipping line.

Other Incoterms You May Encounter

FAQ small - FOB and CIF for Rice Import to Benin

Can you negotiate between FOB and CIF with an Indian exporter?
Yes, absolutely. Most Indian exporters offer both options. Simply specify your preferred Incoterm in your quote request. At Draba Ventures, we offer FOB Chennai, FOB JNPT, CIF Cotonou and other destinations on request.
The CIF price is always higher than FOB small - is this normal?
Yes, completely normal. The CIF price includes the sea freight and insurance that you would have to pay separately under FOB anyway. The price difference between FOB and CIF should roughly correspond to the actual cost of sea freight plus insurance. If the gap is too large, the exporter is inflating their freight margin.
Under CIF, when does risk transfer to the buyer?
Under CIF, risk transfers to the buyer when goods are loaded on the vessel at the origin port small - NOT when the vessel arrives at Cotonou. This is an important nuance: even though the price includes freight to Cotonou, the risk of loss or damage during transit is the buyer's. Hence the importance of marine insurance included in CIF.
How do I calculate the total landed cost of a rice container at Cotonou?
Total landed cost = FOB Price × Quantity + Sea freight + Insurance + Destination THC + Customs clearance fees + ECOWAS import duties + Inland transport from port. Or if CIF: CIF Price × Quantity + Destination THC + Customs clearance fees + Import duties + Inland transport. Your Cotonou freight forwarder can help calculate the exact import duties for your HS code.
Does Draba Ventures offer both FOB and CIF options?
Yes. Draba Ventures offers FOB prices from Chennai, JNPT and Mundra, as well as CIF prices for major West African ports including Cotonou (Benin), Lagos (Nigeria), Tema (Ghana) and Lomé (Togo). Specify your preference in your quote request.

Get Both FOB and CIF Quotes for Cotonou

Draba Ventures sends you both options small - FOB and CIF small - so you can make an informed choice. Response within 24 hours.

WhatsApp small - FOB / CIF Quote ✉ Email