"FOB or CIF?" is the second-most-asked question in PSF quoting (after "what's the price"). The answer depends on your shipment size, your relationship with a forwarder, and how much control you want. Here's the practical breakdown.
FOB HCMC — what you actually pay for
FOB (Free On Board) HCMC means the supplier's price covers the fiber, packaging, and delivery to the Port of Ho Chi Minh City (Cat Lai, typically) and loaded onto the vessel. You (the buyer) take responsibility for everything from that point:
- Ocean freight from HCMC to your destination port
- Marine insurance (recommended, ~0.3-0.5% of cargo value)
- Destination port charges (THC, documentation, customs clearance)
- Inland transport from destination port to your warehouse
- Import duties and taxes in your country
CIF — what's added
CIF (Cost, Insurance, Freight) means the supplier's price covers the fiber, packaging, ocean freight to your destination port, and basic marine insurance. You take responsibility from the destination port onward:
- Destination port charges (THC, documentation)
- Customs clearance and import duties
- Inland transport to your warehouse
The supplier (or their forwarder) arranges the booking, freight, and insurance. They add a margin to cover this — typically $30-60/MT markup above FOB equivalent, depending on the trade lane and season.
The cost math (concrete example)
For 26 MT of 1.4D x 38mm semi-dull PSF, FOB HCMC, on a HCMC-to-Chittagong (Bangladesh) lane in Q3 2026:
| Line item | FOB (USD) | CIF (USD) |
|---|---|---|
| PSF fiber (26 MT @ $1.30/kg) | $33,800 | $33,800 |
| Ocean freight (26 MT, FCL 40HC) | — | ~$1,400 |
| Marine insurance | — | ~$150 |
| Supplier margin on freight+insurance | — | ~$450 |
| Total landed (port) | $33,800 | $35,800 |
Indicative only. Real freight rates fluctuate ±30% by season. Q3 2026 HCMC-Chittagong was roughly $1,200-1,800 per 40HC.
When FOB is the right choice
- You have an established forwarder relationship and can negotiate freight directly
- You buy multiple containers per month and can consolidate volume for better rates
- You want full visibility into the freight and insurance costs (no markup)
- You're shipping to multiple destinations and need flexibility
When CIF makes sense
- First-time buyer, no forwarder relationship yet
- One-off or low-frequency shipments (a few per year)
- You want the supplier to handle documentation end-to-end
- You don't have an in-house logistics team
Other incoterms you'll see in PSF quotes
| Incoterm | What supplier covers | Common in PSF? |
|---|---|---|
| EXW | Fiber at the mill gate. You arrange everything from pickup onward. | Rare (only for local buyers) |
| FCA | Fiber delivered to a named place (forwarder's warehouse, etc.) | Sometimes, for container freight stations (CFS) |
| FOB | Fiber loaded on vessel at origin port | Most common for export |
| CFR / CIF | FOB + freight (+ insurance for CIF) | Common for smaller buyers |
| DAP | Delivered to your named place (warehouse, etc.) | Less common (more supplier risk) |
| DDP | Delivered + duties paid | Rare for PSF (complex with import duties) |
The 3 things first-time buyers miss
- CIF doesn't mean "no extra cost." You still pay destination port charges, customs, duties, and inland transport. CIF only covers the ocean leg.
- Insurance in CIF is minimal. Default CIF insurance often covers only ~110% of CIF value with basic terms. If you need full coverage (all risks, war, strikes), ask the supplier to upgrade or buy your own at destination.
- The "freight included" markup varies wildly. Some suppliers add $20/MT, some add $80/MT for the same lane. Always ask for the FOB equivalent + freight + insurance breakdown, not just the CIF headline price.
The short version
FOB if you have a forwarder. CIF if you don't. The price difference is usually $30-60/MT, which is real money on a 26 MT container. First-time buyers often pay $1,500-2,000 more per shipment for the convenience of CIF — worth it once, expensive ongoing.
Need FOB and CIF quotes side-by-side?
We can quote both on the same shipment, with the freight and insurance itemized, so you can see the markup and decide for yourself. Tell us your destination port.
Request both quotes