Incoterms (International Commercial Terms) define exactly where the seller's responsibility ends and the buyer's begins during a shipment — who pays for what, and at which point risk transfers from seller to buyer. There are eleven official Incoterms, but two cover the vast majority of lubricant import transactions: FOB and CIF.
FOB (Free on Board)
Under FOB, the seller's responsibility ends once the goods are loaded onto the shipping vessel at the named port of origin — in our case, FOB Mundra. From that point on, the buyer arranges and pays for ocean freight, insurance, and everything on the receiving end (destination port charges, customs clearance, inland transport).
Why buyers choose FOB: more control over freight — you can negotiate directly with your own preferred shipping line or freight forwarder, potentially at a better rate than the seller would arrange, and you control the insurance coverage and terms yourself.
CIF (Cost, Insurance, and Freight)
Under CIF, the seller arranges and pays for ocean freight and marine insurance all the way to the named destination port — the buyer only takes over once the goods arrive. The seller's price already bundles in freight and insurance cost.
Why buyers choose CIF: simplicity — one all-in price, no need to independently arrange shipping and insurance, useful for buyers without an established freight-forwarding relationship or importing for the first time.
Which one should you choose?
If you already have a reliable freight forwarder and shipping relationship, or you import regularly enough that your own freight rates beat what a seller would quote under CIF, FOB usually works out cheaper and gives you more control. If you're new to importing, ordering irregularly, or simply want one predictable landed cost without managing freight logistics yourself, CIF is the simpler path.
How we work
Lukeron ships FOB Mundra as standard. If your business needs CIF pricing to a specific destination port instead, let us know when you request a quote — we can quote it either way depending on what's actually easier for your operation.
Have a specific requirement?
Request a quote