Indonesian Coffee Incoterms: FOB Vs CFR Vs CIF 2026 Guide

A practical, no-fluff 2026 guide to comparing FOB, CFR and CIF for Indonesian green coffee. Includes a step-by-step landed cost calculator, a real 20 ft example, capacity numbers for 60 kg bags, and a checklist of origin and destination fees most buyers miss.

If you’ve ever opened a surprise destination invoice after your coffee landed, you already know this: the Incoterm you choose can swing your true cost by several cents per kilo. We’ve moved Indonesian coffee under all three terms for years, and the same question keeps coming up. Which is cheaper in 2026 and how do I compare quotes apples to apples?

Here’s the short answer. CIF looks simple but rarely includes the fees you’re annoyed by. CFR gives you price predictability on freight but not control. FOB gives you the most control and often the lowest total cost if you or your forwarder are sharp. Now let’s turn that into a usable calculator and a worked example you can copy.

FOB vs CFR vs CIF for Indonesian coffee in one minute

FOB (Free On Board) Indonesia. We export-clear, load, and hand risk to you once the coffee is on board at the named Indonesian port. You choose and pay ocean freight, insurance, and all destination costs.
CFR (Cost and Freight). We book and pay the ocean freight to your named destination port. Risk transfers when the goods are on board in Indonesia. You still arrange insurance and pay all destination charges.
CIF (Cost, Insurance and Freight). Same as CFR, plus we buy insurance for your benefit. The default under Incoterms is minimum cover. You still pay all destination charges and inland delivery.

Under CIF, why do I still get destination charges on my coffee shipment?

Because CIF only gets your coffee to the ship’s rail at destination. It doesn’t include terminal handling at the destination, delivery order, port storage, customs clearance, duties, taxes, or last mile to your roastery. Carriers and terminals bill those locally. That invoice is normal, not an error.

Practical takeaway. If you choose CIF, budget your own line for destination THC, D/O fees, customs and trucking. Don’t assume “all in” unless your quote explicitly says DAP or DDP.

A practical landed cost calculator you can use today

We’ve refined this method with importers across Europe, North America and Asia. Build your landed cost per kilo like this:

Start with your bean price per kg under your chosen term.
Add ocean freight per kg (if not included in your term).
Add cargo insurance per kg. Use the rate that matches your coverage, not the minimum by default.
Add destination port charges per kg. Include THC, delivery order, terminal fees, security, scanning if any. Convert per container to per kg.
Add customs clearance fee, duties and taxes per kg. Use your HS code and country rate. This varies, so keep it as a variable.
Add inland trucking per kg to your roastery or warehouse.

Landed cost per kg = Bean price per kg + Freight per kg + Insurance per kg + Destination charges per kg + Clearance per kg + Duty and VAT per kg + Inland per kg.

What’s interesting is how step 2 and step 3 are often quietly marked up in CFR and CIF quotes. That’s where experienced importers claw back a few cents.

Sample landed cost calculation. 20 ft container, Bandar Lampung to Hamburg, 2026

Assumptions for illustration only. Your numbers will differ by month and carrier.

Load: 320 bags x 60 kg = 19,200 kg net. This is a typical fill for Indonesian green coffee in a 20 ft.
Ocean freight all-in to Hamburg: USD 2,900 for a 20 ft in 2026 shoulder season. Includes base rate, BAF and current EU ETS surcharge. Volatile months can swing higher.
Insurance options. All Risk Clause A at 0.35% of insured value plus policy fee, or minimum Clause C at roughly 0.10–0.15%.
Destination charges. Hamburg example: THC, delivery order, terminal and security. USD 950 per 20 ft with prompt pickup. Storage or demurrage not included.

We’ll compare three terms using the same base bean price P per kg.

FOB Indonesia

You add freight: 2,900 / 19,200 = 0.151 USD/kg.
You add insurance. If you insure at All Risk 0.35% on 110% of cargo value, and your cargo value is P x 19,200, your per kg typically lands around 0.020–0.030 USD/kg including policy fee. We’ll use 0.025 USD/kg for the example.
You add destination charges: 950 / 19,200 = 0.049 USD/kg.
Incremental cost beyond bean price: roughly 0.151 + 0.025 + 0.049 = 0.225 USD/kg.

CFR Hamburg

Freight is included by seller. You still add insurance and destination charges.
Incremental cost beyond the CFR bean price: 0.025 + 0.049 = 0.074 USD/kg.
To compare with FOB, ask us to show the freight component in the CFR number. If our CFR includes a USD 2,900 freight, convert back to an implied FOB by subtracting 2,900/19,200 = 0.151 USD/kg.

CIF Hamburg

Freight and minimum insurance included by seller. Most sellers place minimum Clause C cover by default, not All Risk.
You still add destination charges: 0.049 USD/kg.
If you need All Risk, specify it upfront. Expect the CIF price to rise by roughly 0.01–0.02 USD/kg compared with minimum coverage.

What this tells us. On a full 20 ft, the ocean component is often 15–20 cents per kg in 2026. Insurance is small but coverage quality matters. Destination fees quietly add 4–6 cents per kg when you pick up fast, and much more if you run into storage or demurrage.

If you’re evaluating a CIF coffee like Sumatra Mandheling Green Coffee Beans or a Lampung Robusta lot such as Robusta Lampung Green Coffee Beans (ELB & Grades 2–4), plug in your port’s actual THC and D/O. Need a filled-out worksheet with current EU ETS and fuel surcharges? You can Contact us on whatsapp and we’ll send you our calculator with current ranges.

Which term is cheaper in 2026?

In our experience, three out of five buyers pay less overall on FOB because they or their forwarder negotiate better freight and can avoid seller margins on insurance. That said, there are real cases where CIF or CFR wins.

Choose FOB when you or your forwarder have strong rates, you want carrier control, or you’re consolidating multiple origins into one arrival plan.
Choose CFR when you want price predictability to a port you know well and you’re comfortable arranging insurance.
Choose CIF when you want simplicity for finance or budgeting, and you accept that minimum insurance is standard unless you upgrade.

Trends we’re watching in the last six months. EU ETS surcharges have become a permanent line item on Asia–EU lanes. GRI cycles are back with shorter notice, so month-to-month freight swings are common. Destination THC adjustments in several EU ports have nudged upward. Build buffers.

What insurance does CIF actually include for coffee beans, and is it enough?

CIF requires us to procure at least Institute Cargo Clauses (C) at 110% of the contract value. That’s minimum cover. It does not protect you against a lot of coffee-specific risks like sweat damage, mold or many handling losses. We recommend Clause A (All Risk) for bagged green coffee when possible. Typical premiums we see in 2026:

Clause C minimum. Roughly 0.08–0.15% of insured value plus policy fee.
Clause A All Risk. Roughly 0.20–0.45% depending on packaging, route and deductibles.

If you want All Risk under CIF, specify it in the contract. Otherwise budget to buy top-up cover yourself.

How do I compare a FOB Bandar Lampung quote to a CFR Hamburg quote fairly?

Ask for the freight component in the CFR. Convert it to per kg and subtract it to back out an implied FOB.
Add your real insurance and destination costs to the FOB and see which total is lower.
If you can’t get a breakdown, assume there’s a 5–15% margin embedded in the CFR freight and use your own forwarder’s rate for the comparison.

Capacity, control and risk. Quick answers

What’s a realistic fill and weight for a 20 ft container of Indonesian green coffee?

Bagged 60 kg jute. 300–320 bags depending on bag dimensions and stow. We plan for 320 bags or 19,200 kg net when product density allows. If you’re buying denser lots like Blue Batak Green Coffee Beans or aged profiles like Musty Cup Green Coffee Beans (Aged Arabica), we still aim for 19.2 metric tons unless you request headroom.
LCL is rarely worth it. Destination fees per CBM eat your savings.

On CFR terms, who handles customs clearance and pays duties for coffee?

You do. CFR and CIF both stop at the destination port. The buyer handles import formalities, duties, VAT and inland.

Who controls carrier selection under CFR coffee?

We do. Seller books and pays the carriage on CFR and CIF. If you want to choose the carrier or routing, use FOB.

Hidden fees to watch and how to reduce them

Buyers get burned by the same four items.

Destination THC and D/O. You can’t “make them disappear” under CIF. Negotiate all-in port handling with your forwarder, or get a DAP quote if you want a true door cost.
Free time. Ask for extra free time on demurrage and detention before the booking. We can often secure 10–14 days on a full 20 ft if requested early. That’s the difference between zero storage and a painful invoice.
Documentation clarity. Ensure the delivery order party and notify party are correct before arrival. Wrong parties cause delays and storage.
Insurance gaps. Minimum CIF cover may exclude moisture, mold and many handling losses. Upgrade to All Risk or add a specific coffee warranty. It’s inexpensive per kilo.

Small but real wins. Book arrivals early in the week, pre-advise your customs broker with draft docs, and confirm pickup slots with the depot before the container hits the stack. Those three steps kill most storage invoices we see.

If you want us to sanity-check a quote or build a landed worksheet for a specific lot like Arabica Java Ijen Grade 1 Green Coffee Beans or Bali Natural Green Coffee Beans, send your port and target arrival window and we’ll share current freight and insurance ranges. You can also quickly View our products to align volumes with a 20 ft fill.

The reality is that Incoterms are simple on paper and messy at the terminal. Use the calculator, insist on freight and insurance transparency, and protect your free time. That’s how you turn “unexpected port charges” into predictable cents per kilo.