Most importers read a freight quote for one number: the rate. The term sitting next to it — prepaid or collect — gets skipped. It shouldn't. That single word decides when your cash leaves, not just how your cargo moves.
What CIF quietly does to your cash
Buy CIF and your supplier prepaid the freight, then folded their handling margin into the invoice you settle up front. You've paid the freight before the box sails — at a rate you never saw broken out, and often 15–25% above market once the supplier's cut is stripped. You're financing someone else's freight markup, on your working capital, weeks before the goods arrive.
What FOB gives you back
Buy FOB and arrange your own freight, and you choose the term:
- Origin-prepaid — you pay at booking. Cash out before sailing, but the rate is locked and visible.
- Destination-collect — freight settles closer to arrival, holding your working capital longer.
Same lane. Same box. Different cash position. For a Kuwait importer running on supplier credit and a tight float, the timing of that payment can matter more than the rate itself.
Two questions before you confirm
- Is the freight prepaid or collect?
- What does each option do to my cash — not just my landed cost?
A forwarder who can answer both in plain terms is one who's actually looking at your business, not just quoting a lane.
Booking this month? Send us your origin, commodity, and term, and we'll lay both options side by side — rate and cash position together. Start here.