Every steel quotation is a price plus a set of responsibilities, and the incoterm is the shorthand for who carries which. Comparing a CFR quote against an FOB quote is comparing two different products. Here is how the common terms play out for steel cargoes specifically.
The terms buyers actually use
FOB (Free On Board) — named load port. The seller delivers the goods on board the vessel; freight and marine insurance are yours. FOB suits buyers with their own freight contracts or forwarders. For break-bulk steel, confirm who pays for lashing, securing and dunnage — on heavy tubulars these are not trivial line items.
CFR (Cost and Freight) — named discharge port. The seller books and pays ocean freight to your port; risk still transfers when the goods are on board. This is the workhorse term for steel exports — one price to your port, while you keep control of insurance. Most CSACI quotations to port are CFR.
CIF (Cost, Insurance and Freight). CFR plus marine insurance arranged by the seller for the buyer’s benefit. Useful when your bank’s letter of credit requires seller-arranged insurance; note the default is minimum cover, so specify broader institute clauses if you want them.
DDP (Delivered Duty Paid) — named place. The seller delivers to your yard or site with import duties and clearance handled. DDP is the simplest experience for the buyer and the right choice when you lack an import setup in the destination country — but it requires the seller to have reliable customs capability there. We quote DDP selectively in markets where our brokerage relationships support it, such as Germany and Austria.
How to choose
- First order in a new market — CFR to your port keeps the comparison clean: one number, your insurance, your broker.
- Letter-of-credit business — match the incoterm to what the LC text demands (banks reject documents over small mismatches; the term in the LC, the invoice and the bill of lading must agree).
- No import infrastructure — ask for DDP where available, or CFR plus a recommended clearing agent.
- Your own freight program — FOB, and make the stowage and securing scope explicit.
Steel-specific fine print
Two clauses worth attention on any tubular or structural cargo. First, risk transfer at the ship’s rail does not change who arranged survey — an SGS pre-shipment inspection certificate protects both sides regardless of term. Second, for phased programs, fix the incoterm once and vary only quantities and sailing dates; renegotiating terms mid-program invites LC discrepancies.
What does CSACI quote by default? CFR to your named port, with CIF or DDP on request where the market supports it. Every quotation states the incoterm explicitly alongside price, lead time and certification.
Ready to compare terms on a live requirement? Request a quotation and name your preferred incoterm and port — or ask us to quote two terms side by side.