One of the most common debates we have with new importers is the choice of Incoterms. Many buyers request FOB (Free On Board) pricing, thinking it will save them money on shipping.
However, in the volatile 2026 logistics market, choosing FOB can expose you to massive uncalculated risks. At Wellfed Group, we strongly recommend CIF (Cost, Insurance, and Freight) for 90% of bulk oil transactions. Here is why.
1. The "Hidden" Freight Spike Risk
When you buy FOB, you (the buyer) are responsible for booking the vessel. Imagine you sign a contract today, but by the time the oil is ready to load next week, freight rates jump by 20% due to a geopolitical event. You are forced to pay that extra cost.
The CIF Advantage: When we quote CIF, we lock in the freight rate for you. The risk of rising shipping costs is ours, not yours.
2. Insurance & Liability
With FOB, your liability begins the moment the oil crosses the ship's rail. If the ship encounters a storm or piracy issues 10 miles out of port, it is your loss.
With CIF, Wellfed Group provides comprehensive marine insurance (110% of cargo value). We manage the policy, and you are protected until the goods arrive at your destination port.
3. Loading Priority
Shipping lines prioritize exporters who book volume consistently. As a large exporter, Wellfed Group has negotiated volume contracts with lines like Maersk and MSC. If you try to book a single FOB slot as a new buyer, you will likely face "rolled" bookings and delays. We get your oil on the water faster.
Summary
FOB might look $10 cheaper on paper, but CIF buys you peace of mind, price certainty, and speed. In the high-stakes world of bulk commodities, certainty is profit.
