We've cleared over 3,000 export shipments, and the single most common cause of buyer disputes isn't quality or delay — it's a misunderstanding about who was responsible for what, at which point in the journey. That misunderstanding almost always traces back to one thing: the Incoterm on the purchase order.
FOB — Free on Board
Under FOB, Nusawara's responsibility ends the moment your goods are loaded onto the vessel at the Indonesian port of departure. From that point, you — the buyer — own the risk and arrange (and pay for) the ocean freight and marine insurance yourself. FOB is the most common term for experienced importers who already have a freight forwarder relationship and want direct control over the shipping leg, including choice of carrier and schedule.
The price you pay under FOB covers the goods, export packaging, domestic transport to port, and export customs clearance — nothing beyond the ship's rail.
CIF — Cost, Insurance, and Freight
CIF bundles the ocean freight and a minimum level of marine insurance into the price Nusawara quotes you. We book the vessel, we insure the cargo, and the price you see is the price that gets your goods to your destination port (not your warehouse — CIF stops at the port of discharge, before import duties and inland transport).
The trap buyers fall into with CIF is assuming the insurance is comprehensive. Standard CIF insurance is Institute Cargo Clauses (C) — the minimum tier. If you're shipping something moisture-sensitive like whole spices, ask specifically for Clause (A) coverage and expect to pay a small premium for it.
— Aditya Nugraha, Compliance & Documentation Lead
CNF / CFR — Cost and Freight
CNF (sometimes written CFR) sits between the two: we arrange and pay for the ocean freight to your destination port, but insurance is entirely your responsibility to arrange separately. Buyers who already hold an open marine insurance policy across all their suppliers — common for larger importers — often prefer CNF, since they don't want to pay for insurance twice or reconcile two separate policies on one shipment.
Which term should you actually ask for?
- First-time importer, no freight forwarder relationship yet — start with CIF. Fewer moving parts to manage.
- You already have a customs broker and freight forwarder — FOB gives you direct control and is usually cheaper once you factor in forwarder margins on the freight leg.
- You hold your own marine cargo insurance policy — CNF avoids paying for insurance twice.
- You're shipping high-value or moisture-sensitive goods and want Nusawara to manage insurance — CIF with upgraded Institute Cargo Clauses (A).
Whichever term you choose, ask us to state it explicitly against the named port on your proforma invoice — "CIF Rotterdam" and "FOB Rotterdam" are not interchangeable phrases, and getting this wrong on paperwork is the fastest way to create a customs delay on the receiving end. We quote all three terms on every proforma invoice by default, precisely so you can compare landed cost before committing.
