What are shipping terms?
Shipping terms, or Incoterms, are international rules that define the obligations of seller and buyer: who pays for inland transport, export customs clearance, sea freight and insurance, and where responsibility for the goods passes. Always state the term together with the named place in the contract and the quote, e.g. “CIF Jebel Ali port”.
EXW: Ex Works
The supplier makes the goods available at its factory, and you handle everything after that: loading and transport to the port, export customs clearance, sea freight and insurance. This term suits importers who have a freight forwarder in Egypt and want to control shipping themselves.
FOB: Free On Board
The supplier handles transport to the port of export, export clearance and loading onto the vessel; from there, your responsibility begins, along with the cost of sea freight and insurance. It is a common term in sea trade, so if you prefer it, mention it in your quote request.
CIF: Cost, Insurance and Freight
The supplier pays sea freight and insurance to the port of destination in your country, so you get a single all-in price to your port. Note that responsibility for the goods passes to you once they are loaded onto the vessel at the port of export, and that CIF insurance provides only minimum cover unless agreed otherwise. Import customs clearance and duties in your country remain your responsibility.
Comparison table
| Parameter | EXW | FOB | CIF |
|---|---|---|---|
| Transport to port of export | Buyer | Supplier | Supplier |
| Export clearance | Buyer | Supplier | Supplier |
| Sea freight | Buyer | Buyer | Supplier |
| Marine insurance | Buyer | Buyer | Supplier |
| Import clearance | Buyer | Buyer | Buyer |
Which term should you choose?
- First container, market still new to you: CIF is easier, because you know the cost to your port from the start.
- You have a forwarder and good freight rates: EXW or FOB gives you more control over cost and choice of shipping line.
- Always compare like with like: don't compare one supplier's EXW price with another supplier's CIF price.
Our shipping terms
We quote on CIF and EXW terms and ship from Damietta, Port Said, Alexandria and Ain Sokhna with most major shipping lines. State your destination port and preferred term in your quote request. Details on our export & shipping page.