What Incoterm should I use - FOB, CFR, or CIF - when importing construction materials to Africa?

The three sea-freight Incoterms most relevant to construction material imports: **FOB (Free On Board)** - Seller delivers goods on board the vessel at the origin port. Buyer is responsible for ocean freight, insurance, destination clearing, and inland delivery. Best when: - The buyer has a contracted freight forwarder with better rates than the supplier - The buyer wants full control of the carrier choice and routing - Common for high-volume, repeat shippers **CFR (Cost & Freight)** - Seller delivers goods to the destination port (freight included), but insurance is the buyer's responsibility. Risk transfers when goods cross the ship's rail at origin. Best when: - Buyer prefers a single landed-cost-to-port number - Buyer wants to arrange their own insurance (often cheaper locally) - Most common Incoterm for first-time and mid-volume African importers **CIF (Cost, Insurance, Freight)** - Same as CFR but the seller also arranges minimum insurance (typically ICC Clause C). Best when: - Buyer wants the simplest possible quote (everything to port included) - Buyer is comfortable with minimum-cover insurance - Note: ICC Clause C only covers named risks (fire, sinking, collision). For all-risks cover, buy supplementary insurance or upgrade to ICC Clause A. **Avoid for first-time imports:** DDP (Delivered Duty Paid) - the seller handles everything to your door including duty. It looks convenient but the seller typically marks up duty and clearing, and the buyer has no visibility into actual landed cost. **Rule of thumb:** CFR is the default starting point for most African buyers. Move to FOB once you have a trusted local forwarder; consider CIF only for low-value or one-off shipments.