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Moreonyx Furniture

Trade · Explanation

FOB vs CFR vs DDP for Stone Furniture

The three Incoterms differ in where the risk and the cost pass from seller to buyer. FOB puts the buyer in charge of the main carriage. CFR includes carriage and insurance to the named port. DDP includes everything to the buyer's door. For a heavy stone table the freight share of the landed cost is large enough that comparing a FOB quote with a DDP quote is comparing two different products.

What does FOB include?

The seller has the piece exported and loaded at the named port of shipment. From that point the main carriage, insurance and everything else are yours.

Source: Incoterms 2020, ICC

What does CFR add?

CFR includes the cost of the piece and the main carriage to the named port of destination, with insurance arranged by the seller. Your costs start at import clearance.

Source: Incoterms 2020, ICC

What does DDP cover?

Everything up to delivery at the buyer's address, including import duty and local delivery. One invoice, one predictable figure, and the supplier carries the risk of the journey.

Source: Incoterms 2020, ICC

Why does the term matter more for stone than for most goods?

Because of weight relative to value. A stone table is heavy, dense and awkward, so freight runs a much larger share of the landed cost than it would for a comparable value of textile goods. On a heavy stone table, freight can be 15 to 25 percent of the landed cost. That is large enough that a quote on one term cannot be compared with a quote on another.

Which term is usually best for a first order?

DDP, if you do not have a broker and you want one predictable figure. It also puts the transit risk with the party that controls the packing. If you do have a forwarder and can collect from the port, FOB is usually cheaper.

What this page does not cover

What this page does not cover: the descriptions follow the ICC Incoterms 2020 definitions, but the practical outcome still depends on the named place, the route and the carrier. The freight percentage is an order-of-magnitude figure for heavy stone furniture, not a quotation. We are not a freight forwarder and we do not quote DDP terms on this site.

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