FOB vs. CIF: Mastering Incoterms to Minimize Arcade Import Costs

Introduction: Stop Overpaying for International Shipping

For international arcade operators, the cost of the machine is only half the story; shipping and logistics often dictate the final profitability of a bulk order. Choosing the wrong Incoterm (International Commercial Term) can result in unexpected fees and delays.

As a dedicated B2B manufacturer, Infinitycade simplifies global purchasing. Understanding FOB and CIF is the first step to mastering your import costs.

1. What Are Incoterms and Why Do They Matter to Arcade Buyers?

Incoterms define precisely when the risk and cost of goods shift from the seller (Infinitycade) to the buyer (you). When dealing with Full Container Load (FCL) or Less than Container Load (LCL) shipments, these terms determine who pays for insurance, freight, and who is responsible for customs clearance.

2. Option A: FOB (Free On Board) - Maximize Control, Potential Savings

What it Means:

The seller (Infinitycade) is responsible for all costs and risks until the goods are loaded onto the vessel at the port of origin. Once the cargo is onboard, the buyer (you) assumes all responsibility for freight, insurance, and arrival customs.

The B2B Advantage:

• Cost Control: This is often the most cost-effective choice for large, experienced buyers. You can negotiate your own favorable rates with shipping carriers, potentially saving significant money compared to the rates offered by the manufacturer.

• Supplier Transparency: FOB separates the machine price from the freight cost, ensuring full transparency in your purchasing records.

3. Option B: CIF (Cost, Insurance, and Freight) - Minimize Hassle, Predictable Cost

What it Means:

The seller (Infinitycade) covers the cost of goods, insurance, and main freight to bring the goods to the port of destination. The risk transfers once the goods are loaded at the port of origin, but the cost transfer happens at the destination port.

The B2B Advantage:

• Simplicity: Ideal for first-time buyers or smaller operators. You receive a single, predictable price for the machine delivered to your port.

• Manufacturer Expertise: Infinitycade specializes in managing transactions under precise CIF terms, utilizing our established logistics network to handle complex freight arrangements efficiently.

4. Infinitycade’s Logistics Mastery: Beyond the Terms

Choosing FOB or CIF is just the start. As an experienced global manufacturer, we provide the supporting expertise that minimizes your risk:

• Optimized CBM Calculations: We provide optimized Cubic Meter (CBM) calculations to ensure you pay the absolute minimum freight cost per unit, regardless of whether you choose FCL or LCL.

• Full Documentation: We provide all necessary commercial documentation, including Bills of Lading (B/L), to ensure efficient customs clearance and reduce delays.

email us : sales@infinitycade.com or call us : +86 13702548692 for more info