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How Do I Ship My Goods? - What CIF and CFR Mean



CIF / CFR - What Do They Mean?

When buying goods under the Intl Trading Terms CIF (Cost, Insurance, Freight) and CFR (Cost and Freight), your supplier will be responsible for paying any charges at origin and the freight (port to port element) up to a designated point.
For example if you are shipping goods from China to the UK you may agree with your supplier that you will purchase goods under Incoterm "CFR Felixstowe". In this case the supplier will nominate their own carrier and will ship goods to arrival Felixstowe port. If terms are agreed as "CIF Felixstowe" then supplier should also include cargo insurance.
The down side of purchasing under CIF / CFR terms is when goods arrive at UK port you have no idea what the carriers destination charges will be, and they can be much higher than you may imagine! We would always advise you when getting a CIF / CFR price for your goods to also ask your supplier to advise what the corresponding destination charges will be.

What Destination Charges Should I Expect To Pay?

  • UK Terminal Handling
  • UK Documentation Charge
  • CISF (China Import Service Fee)
  • ICAF/CAF/ROE (Exchange rate related surcharges)

These charges are exclusive of Customs clearance and delivery charges that your trusted forwarder will provide.

Can I Organise The Shipping Of My Goods, Myself?

If your supplier can not give you 100% confirmation of reasonable UK charges then you should press them for a fresh price for the goods based on different buying terms, namely FOB or Ex works (links to follow). You can contact Mannson Freight for a price to ship goods to UK on this basis.

How Do I Get My Good Insured if I don't buy CIF?

Easy, you can contact the forwarder shipping your goods under FOB or Ex works terms and they should be able to provide full marine insurance cover for theft, damage and total loss at a very reasonable price.

Come to Mannson Freight for a quote and we will ensure you are aware of all the charges that will be incurred, door to door. We provide weekly reliable shipping services from China to UK, India to UK and many other routes as well as air freight, warehousing and full customs clearance services. Contact sales@mannson.com or complete the online quote form.