FOB vs CIF Calculator

FOB (Free On Board) and CIF (Cost, Insurance and Freight) are the two Incoterms 2020 rules you will see most often on Indonesian green coffee offers. Under FOB, the price covers your coffee loaded onto the vessel at the origin port (typically Belawan, Surabaya, or Makassar) and you arrange and pay for ocean freight, marine insurance, and everything onward. Under CIF, the exporter prices the coffee delivered to your destination port, with sea freight and cargo insurance already included.

The two prices are not directly comparable until you add the missing legs. To turn an FOB quote into a true landed comparison, add ocean freight and a marine insurance premium; that total is your CIF-equivalent value. The calculator above does this both ways so you can line up an FOB offer from one supplier against a CIF offer from another on the same basis.

Which term is cheaper depends on who can buy freight and insurance more competitively. Experienced importers with their own freight forwarder contracts often save money on FOB, while first-time buyers usually prefer CIF for its simplicity and single, predictable per-bag cost. Note that CIF coverage ends at the destination port: import duty, customs clearance, terminal handling, and inland trucking are always paid by the buyer under both terms.