Feed procurement glossary
Incoterms (FOB, CIF, DAP)
Definition
Incoterms are the ICC's standard trade terms defining where delivery happens and who pays freight, insurance and risk. FOB ends at the ship at origin port, CIF adds sea freight and insurance to destination port, DAP delivers to a named place.
Why it matters
Quotes on different Incoterms are not comparable until converted to the same delivery point.
When it affects procurement
When comparing equipment or feed offers from different countries.
Example
A buyer converts an FOB offer and a CIF offer to delivered-to-site cost before comparing them.
Frequently asked questions
Which Incoterm is best?
None is best in general; choose the one matching who can manage freight and import, and compare every offer on the same basis.