Incoterms® 2020 define who pays for transport and insurance and when risk passes from seller to buyer. For reefer containers of frozen meat, the choice affects your price, your control over shipping and your exposure to risk.
FOB — Free on Board
The seller clears the goods for export and loads them on board at the Brazilian port. The buyer books and pays sea freight and insurance. Choose FOB if you have a strong freight forwarder and good freight rates.
CFR — Cost and Freight
The seller pays sea freight to your port, but risk passes to you once the container is on board in Brazil. The most common term for frozen meat.
CIF — Cost, Insurance and Freight
As CFR, plus the seller buys cargo insurance (minimum cover under Institute Cargo Clauses C unless agreed otherwise). Ask for wider cover (Clauses A) and reefer-breakdown cover.
DAP — Delivered at Place
The seller delivers to an agreed place in your country, ready for unloading; you pay import duties and clear customs.
DDP — Delivered Duty Paid
The seller also pays duties and clears import customs. Only possible where the seller can act as importer of record.
Which should you choose?
- New importers: CFR or CIF to the main port
- Experienced importers with good freight contracts: FOB
- Buyers wanting door delivery: DAP
See our shipping and logistics page for container loads and transit times.
