Navigating Global Trade: Your Guide to FOB, CIF, and a Seamless Journey

Navigating Global Trade: Your Guide to FOB, CIF, and a Seamless Journey

The journey of green coffee from the high jungle of Peru to your roastery is an adventure of many paths. Understanding the terms that guide this journey is key to a seamless and successful import experience. As a roaster, you'll encounter two primary terms: FOB (Free On Board) and CIF (Cost, Insurance, and Freight). Here is a practical guide to help you choose the path that is right for your business.

 

The FOB Path: Your Control, Your Journey

FOB (Free On Board) means that Sunrise Trading, as the seller, is responsible for the coffee up to the point it is loaded onto the vessel at the Port of Callao in Peru. Once the coffee is on board, the responsibility and risk transfer to you, the buyer.

What this means for you:

  • Control: You have complete control over the shipping process from the port onward. You choose the freight forwarder, negotiate the rates, and manage the logistics.

  • Transparency: This path gives you full visibility into the costs of shipping and insurance.

  • Flexibility: It is an excellent option for experienced importers with established relationships with freight forwarders.

 

The CIF Path: Our Guidance, Your Peace of Mind

CIF (Cost, Insurance, and Freight) is a different journey. With a CIF agreement, Sunrise Trading takes on the responsibility of arranging and paying for the shipping and insurance of your coffee to a designated port of destination.

What this means for you:

  • Convenience: We handle the complex logistics of international shipping, customs, and documentation. The journey is simpler for you, requiring less of your time and resources.

  • Risk Management: The risk of loss or damage to the coffee is transferred to you only after it arrives at your designated port, providing you with greater security.

  • Simplicity: This path is an excellent choice for roasters who are new to importing or who prefer to focus on their core business of roasting.

 

Choosing Your Path: Which is Right for You?

Choosing between FOB and CIF is a strategic decision. If you have an established network of logistics professionals and a desire to manage the journey yourself, the FOB path offers maximum control. If you prefer a simpler, more streamlined process and the assurance of a guided journey, the CIF path is the ideal choice.

Regardless of which path you choose, our expertise is always at your disposal. Our goal is to provide a seamless experience from the high jungles of Peru to your roastery. Our team is here to guide you, ensuring that every shipment is a successful chapter in our shared journey.

 

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