FOB vs EXW vs CIF: China Shipping Terms Explained

Who pays, who carries the risk, and who controls the freight — and why most small importers land on FOB with their own forwarder.

Last updated: October 2026 · By the PandaRoads team in China

Short answer: EXW = you take over at the factory door (maximum control, maximum work). FOB = the seller delivers the goods onto the vessel at the origin port; you control ocean freight onward (the sweet spot for most importers). CIF = the seller pays freight and insurance to your destination port (convenient, but you cede control and often pay a hidden margin). For most small-to-mid importers, FOB + your own freight forwarder gives the best cost visibility and control.

The three terms at a glance

TermSeller responsible untilBuyer takes overBest for
EXW (Ex Works)Goods packed at factory doorEverything: inland haul, export customs, freight, insuranceBuyers with a strong own forwarder in China
FOB (Free On Board)Goods loaded on vessel at origin port, export clearedOcean freight, insurance, destination costsMost importers: control freight, predictable origin costs
CIF (Cost, Insurance, Freight)Goods arrive at destination port (freight+insurance paid)Unloading, import customs, onward deliveryBuyers who want door-to-port simplicity, accept less control

Who controls the freight (and why it matters)

Cost traps to watch

Where a local team fits

We quote and verify the origin-side costs (inland haul, export handling, loading) so your FOB number is real, and we can inspect goods before loading — remote checks $129 per request, on-site $239 per day. See how to import from China and pre-shipment inspection.

Frequently Asked Questions

Which is cheaper, FOB or CIF?

On paper CIF can look cheaper because freight is bundled, but the seller’s margin is inside it. Quote FOB plus an independent forwarder rate to see the true cost; FOB usually wins for buyers with any volume.

Do I need my own freight forwarder for FOB?

Yes, or your agent arranges one. Under FOB the ocean leg is your responsibility, so you need a forwarder to book and manage it.

Is EXW ever a good idea?

Only if you have a trusted forwarder with strong China inland coverage who can beat the seller’s origin handling. Otherwise EXW pushes China-side logistics risk onto you for little gain.

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