A practical 2025 buyer’s checklist for Indonesian green coffee shipments. What CIF really covers, every destination-side fee you still pay, how to budget for THC, DO, storage, demurrage and brokerage, and when FOB is the smarter play.
If you import Indonesian green coffee, you already know that a CIF price can look attractive on paper. Freight and basic insurance are included up to your named port. Then the container lands and you get a stack of destination invoices you did not plan for. In our experience, that is where margins vanish.
This guide breaks down CIF vs FOB for coffee in 2025, but focuses on the real question importers ask us every week. What destination charges does CIF not include and how do I control them?
CIF vs FOB in 60 seconds for coffee
CIF Incoterms 2020 means the seller pays costs to bring the coffee to the named port of destination. The seller also buys marine insurance. Risk transfers when the coffee is on board the vessel at the origin port. Everything that happens after the ship arrives is for the buyer’s account. That includes most destination charges.
FOB means the seller delivers and loads the coffee on board at the origin port. From there, the buyer chooses the carrier, route and insurance. Buyers who want control of arrival costs usually prefer FOB.
Here is the thing. For coffee, the difference is less about ocean freight and more about the arrival bill. CIF can work. But you need to know exactly what is not included.
What CIF does not cover at destination
Does CIF include destination terminal handling (THC)?
No. Under CIF, Destination THC is for the buyer. You will see it as DTHC, terminal handling, container port handling charges or wharfage. Different ports bundle it differently but the principle is the same.
Under CIF, who pays demurrage and detention if my coffee is not cleared on time?
The buyer does. Demurrage is the fee for keeping a full container inside the terminal past the free days. Detention is the fee for keeping the empty container out of the terminal past the free days. They are separate from port storage. If customs or a food agency examines your coffee, the clock can run faster than expected.
What marine insurance coverage do I get with CIF and is it enough?
CIF requires the seller to obtain minimum cover. In practice that often means Institute Cargo Clauses C. That is limited. It does not cover many common coffee risks. We recommend upgrading to Clauses A and insuring at 110 percent of the CIF value. Coffee is hygroscopic. Condensation, sweat, and minor water ingress are real-world risks. Ask for the certificate to confirm the clauses and deductibles.
Can I use my own forwarder or control arrival charges when buying CIF?
Not by default. Under CIF the seller chooses the carrier and usually nominates the destination agent. You can negotiate exceptions, but if you want full control, ask for FOB. We sometimes quote both so you can compare the all-in landed cost.
The 2025 destination charges checklist for CIF Indonesian coffee
These are the destination-side items we see on coffee arrivals that are not included in CIF. Names vary by port and carrier, so review the proforma before shipment.
- Destination THC and port handling. Terminal handling, wharfage, quay charges. Typical ranges per 20 ft in major ports are often USD 250 to 700. It can be higher in high-congestion terminals.
- Delivery Order fee. Paid to the carrier or their agent to release the Bill of Lading. Often USD 50 to 150. Some carriers add admin or EIR fees.
- Documentation and release charges. Telex release, BL surrender, EDI and manifest fees. Expect USD 30 to 150 combined.
- Customs brokerage. Clearance filing, classification, and coordination. Commonly USD 100 to 300 for a straightforward coffee entry. Additional for multiple HS lines or special programs.
- Security filings. Examples include ISF in the US or ENS/ICS in the EU and UK. Usually USD 30 to 100. Late ISF can trigger fines, so pre-file.
- Government duties and taxes. Green coffee beans are duty free in several markets, but not all. VAT or GST can apply on CIF plus duty. Budget the local rate even if duty is zero.
- Inspection, exam and scanning. Customs, food safety, agriculture, or x-ray exams can add USD 100 to 500 for simple holds and more for intensive exams. These are unpredictable but common for food.
- Port storage. Charged by the terminal when a full container sits beyond the free days. This is different from demurrage. Storage rates escalate by tier.
- Demurrage and detention. Charged by the carrier for late pickup or late return of the empty. Daily rates vary widely. Free time has tightened in several ports over the past year.
- Chassis, appointment and local terminal fees. In the US, chassis rental and appointment fees can add USD 30 to 60 per day or per move. Some European ports have similar components built into the haulage quote.
- Inland delivery. Drayage to your warehouse, unloading and return of empty. Highly lane-specific. Get this quoted early.
Takeaway. CIF brings your coffee to the port. Everything after vessel arrival is on you unless you negotiate otherwise.
A realistic budget example for a 20 ft CIF coffee container to Los Angeles
Numbers vary by carrier and terminal. This ballpark helps with first-pass budgeting.
- DTHC and port handling. USD 450 to 700
- Delivery Order and release. USD 80 to 180
- ISF filing. USD 35 to 80
- Customs brokerage. USD 150 to 250
- Exam contingency. USD 0 to 400 (set aside even if you are not held)
- Chassis and terminal appointment. USD 60 to 150
- Drayage to a nearby warehouse. USD 350 to 900 depending on distance and waiting time
- Demurrage or detention. USD 0 if cleared within free time. It escalates fast after day 4 to 5
Total typical destination charges to land at your warehouse. USD 1,125 to 2,660 excluding duties and VAT. The low end assumes smooth clearance and short-haul drayage.
Common mistakes we still see and how to avoid them
- Assuming CIF includes destination THC. It does not. Get a destination proforma before you fix the purchase price.
- Waiting for the Arrival Notice to start clearance. Pre-file customs as soon as you have the final commercial invoice, packing list and BL details. ISF in the US should be filed at least 24 hours before loading.
- Confusing port storage with demurrage and detention. They are separate clocks. Ask your broker and drayage partner to watch all three.
- Not planning for exams. Build a modest exam contingency into your landed cost. It removes the surprise factor.
- Underinsuring cargo. Upgrade to Institute Cargo Clauses A. Coffee deserves it.
Practical fix. Ask your supplier to share the carrier, routing and destination agent before shipment. Get a written estimate of DTHC, DO and release fees at your port. If the agent’s numbers look inflated, that is your cue to compare FOB.
2025 trends that affect coffee arrival charges
- Free time is tighter. Several carriers have reduced free days for demurrage and detention since late 2024. Negotiate extra free time when you book or plan warehouse capacity to avoid idle days.
- Congestion and surcharges are uneven. Asia to US West Coast lanes have been stable recently, while some Europe and East Coast routes have seen temporary congestion and security surcharges. Always check the carrier’s tariff notes for destination-specific add-ons.
- Compliance scrutiny is higher for food shipments. We are seeing more document checks for origin traceability, especially for Europe-bound coffee. Build in time for potential holds.
What documents the seller provides under CIF for Indonesian coffee
Under CIF, we provide the documents needed for you to clear the coffee. Typically this includes the commercial invoice, packing list, clean on-board Bill of Lading, insurance certificate, certificate of origin, phytosanitary certificate and the ICO export certificate where required. For specialty lots like Arabica Bali Kintamani Grade 1 Green Coffee Beans or Sumatra Mandheling Green Coffee Beans, we also supply cupping sheets and lot traceability. You still pay the destination charges listed above.
Need help matching documents to your country’s import rules or getting a lane-specific arrival budget? You can Contact us on whatsapp. A quick look at your port, HS code and warehouse plan usually saves days later.
Is FOB cheaper than CIF once I add destination charges?
Often yes for experienced importers, because you control the forwarder and destination agent. You can negotiate DTHC and haulage directly, choose a broker that knows coffee, and lock in extra free time. If you are new to importing or only testing a small lot, CIF can be fine as long as you budget the arrival side. We regularly quote both so you can compare apples to apples.
How to decide for your next shipment
- If you have a trusted forwarder or broker. Choose FOB. You will control the arrival bill and usually reduce it.
- If you need simplicity for a trial order. Choose CIF but ask for a written estimate of DTHC, DO and release fees from the destination agent before booking. Upgrade the insurance.
- If timing is tight around holidays or harvest peaks. Negotiate extra free time at booking. Cargo that lands on a Friday afternoon often pays weekend rates by Monday.
In our experience, three out of five cost surprises come from DTHC plus delays that trigger demurrage or detention. Get those two under control and the rest is predictable.
If you are planning a 2025 program around Indonesian coffees like Blue Batak Green Coffee Beans or our wine-fermented blend Bali, Java, Gayo & Mandheling - Wine Green Arabica Coffee Beans, we can price the same lot both FOB and CIF to your port, then map the destination charges so you see the real landed picture. Ready to compare options? Call us. Or browse current lots and volumes here. View our products.