Knowledge base · Technical note
Landed cost: EXW, FOB, CIF and DDP compared
A cheaper unit price can cost more in total. The trade term decides how much of the journey is inside the number you were quoted.
Why unit price is the wrong comparison
Two quotations for the same lock at different prices are not comparable until you know what each one includes. One may be the price at the factory gate; the other may be the price on your loading dock with duties paid. The gap between those two numbers is usually larger than the gap between the suppliers.
What each term actually covers
| Term | Supplier arranges | You arrange |
|---|---|---|
| EXW | Production and packing | Inland haulage, export clearance, freight, insurance, import, duties |
| FOB | Inland haulage and export clearance to the port | Freight, insurance, import clearance, duties, inland delivery |
| CIF | Freight and marine insurance to destination port | Import clearance, duties, inland delivery |
| DDP | Freight, export and import clearance, duties where available, to your door | Unloading |
The costs that hide inside EXW and FOB
- Inland haulage from factory to port
- Export documentation and clearance
- Ocean or air freight, and how it moves with fuel and capacity
- Marine insurance
- Import clearance and broker fees
- Import duties and any applicable taxes
- Inland delivery from port to your site
Every one of those is real, and every one of them lands on you under EXW.
When each term makes sense
- EXW — you already have a forwarder and other cargo to consolidate.
- FOB — you control the freight rate and want to choose the sailing.
- CIF — you want the goods landed at port on one number, and will handle import yourself.
- DDP — you have no forwarder and want a single landed price. Suits first orders and smaller buyers particularly well.
How to compare two quotations properly
Put both on the same term before you compare. Ask each supplier for the same configuration — same material, same quantity, same branding, same packaging — and then ask one of them for a DDP quote as a reference point. The DDP number is what you will actually pay to get the goods.
We quote EXW, FOB, CIF, CFR and DDP, and we will quote more than one where it helps you see the split between the goods and the journey.
Confirm it on your own doors
Send a door photo, the cylinder size or the mounting dimensions. We confirm fit with a physical sample before you commit to a quantity.
What readers ask next
Comparing totals rather than unit prices changes the questions.
Which trade term should a first order use?
FOB is the usual starting point because it puts the sea freight and the inland legs on separate lines. Once those numbers are known, comparing against a DDP quotation becomes straightforward.
Can you quote two terms side by side?
Yes. Ask for the same specification under two terms and the difference shows exactly what sits inside each number, which is more useful than a single figure.
Where does your responsibility end under each term?
We ship EXW, FOB, CIF, CFR and DDP, and the term decides the handover point. Tell us the destination port or address and we will quote the term that matches how you buy.