How FOB and CIF Shipping Terms Work for Textile Imports

When you request a quotation from a Pakistani textile exporter, you will typically receive pricing on FOB or CIF terms. These are Incoterms, internationally recognised shipping terms defined by the International Chamber of Commerce, that specify exactly which party is responsible for each cost and risk during shipment.

What does FOB mean?

FOB stands for Free On Board. Under FOB terms, the exporter is responsible for all costs and risks up to the point where the goods are loaded onto the vessel at the named port. For Pakistani textile exports, the most common FOB ports are Karachi and Port Qasim.

• Exporter pays: factory costs, inland transport to port, export customs clearance, port handling fees to vessel
• Buyer pays: ocean freight, marine insurance, destination port charges, import customs
• Risk transfers: when goods cross the ship's rail at the named port

What does CIF mean?

CIF stands for Cost, Insurance and Freight. Under CIF, the exporter also arranges and pays for the ocean freight and marine insurance to the named destination port. This makes it easier for buyers to compare the all-in landed cost without arranging their own freight.

• Exporter pays: all FOB costs plus ocean freight and marine insurance to destination
• Buyer pays: destination port charges, import customs clearance, inland delivery
• Risk transfers: same as FOB, when goods are loaded at origin port

Which term should I request?

CIF is simpler for buyers who do not have an established freight forwarding relationship or who want to compare all-in costs from multiple suppliers easily. FOB gives buyers who have preferred freight rates or forwarding relationships more control over logistics costs. MSA Exports quotes both; just specify which you prefer when requesting a quotation.