For a container of building materials or FF&E from China, the three Incoterms that matter most are FOB, CIF and DDP. In short: FOB means you take over (and control) the shipment once it is loaded at the Chinese port; CIF means the supplier arranges and pays sea freight and insurance to your destination port, but you still handle import clearance and delivery; DDP means the goods are delivered to your site with all freight, duties and clearance paid. For most project buyers running multiple orders into one consolidated shipment, FOB gives the most control, while DDP is simplest for a one-off order. This guide explains which to choose and why it changes your landed cost.
FOB (Free On Board): Best for Consolidated Project Shipments
Under FOB, the supplier delivers the goods onto the vessel at the named Chinese port (for example FOB Foshan/Nansha or FOB Shanghai) and you take over cost and risk from that point. You (or your sourcing agent/freight forwarder) book the ocean freight, insurance and destination clearance.
- Why project buyers prefer it: when you are consolidating tiles, doors, furniture and cabinetry from several factories into shared containers, FOB lets one forwarder combine everything and you control routing, sailing schedule and cost.
- You control: freight rates, insurance level, and who clears customs at your end.
- Watch for: you need a reliable forwarder and you carry the risk during ocean transit (so insure it).
CIF (Cost, Insurance and Freight): Simpler, Less Control
Under CIF, the supplier arranges and pays for sea freight and basic marine insurance to your destination port. Risk still passes to you once goods are loaded in China, but the supplier books the shipping.
- Good for: buyers who want the supplier to handle sea freight and do not need to consolidate multiple suppliers.
- Trade-off: you lose control of the freight choice and margin, the insurance cover is often the minimum, and you still handle import duties, clearance and final delivery.
Sourcing this for a commercial project?
FBM Sourcing works with project owners, developers, main contractors and FF&E contractors on hotel, apartment, school, office and other commercial building projects. Send us your BOQ, drawings or product list — we’ll come back with a sourcing plan and budget estimate.
DDP (Delivered Duty Paid): Simplest, Highest Supplier Risk Premium
Under DDP, the supplier (or agent) delivers to your site with everything paid: freight, insurance, import duty and clearance. You receive the goods with no shipping admin.
- Good for: one-off orders, buyers without an import setup, or fast fit-outs where simplicity is worth a premium.
- Trade-off: highest unit price (the risk and duty are priced in, sometimes opaquely), and for large project volumes it can be more expensive and less transparent than FOB plus your own forwarder.
FOB vs CIF vs DDP: Quick Comparison
- Who books ocean freight: FOB = you; CIF = supplier; DDP = supplier
- Who pays import duty & clearance: FOB = you; CIF = you; DDP = supplier
- Who delivers to site: FOB = you; CIF = you; DDP = supplier
- Control over cost: FOB = highest; CIF = medium; DDP = lowest
- Best for: FOB = consolidated multi-factory project orders; CIF = single-supplier orders; DDP = one-off or no import setup
How This Affects Your Landed Cost
The quoted product price means little until you convert it to a landed cost: product + freight + insurance + duty + clearance + inland delivery. A low FOB price can beat a “cheaper-looking” DDP quote once you see the full breakdown, and vice versa. Always compare like-for-like on the same Incoterm, and ask for the port of loading named in the quote.
How FBM Sourcing Handles Incoterms for Project Orders
FBM Sourcing quotes on your preferred Incoterm and, for consolidated project shipments, usually recommends FOB from Guangzhou/Foshan or Shanghai with a vetted forwarder so you keep control of freight and can combine multiple factories into shared containers. We can also arrange CIF or DDP where that suits the order, and we build QC and pre-shipment inspection into the schedule so goods are checked before loading regardless of the shipping term.
Get a Landed-Cost Quotation for Your Project
Send your product list or BOQ, quantities, destination port and preferred Incoterm. Submit your project requirements and we will return a quotation with the shipping term and consolidation plan spelled out.
For related reading, see our comparison of sourcing agents, trading companies and buying factory-direct and how much a China sourcing agent costs.
