October 30, 2026 · 4 min read
Incoterms for Bulk Metals & Minerals: FOB, CIF and Who Carries the Risk
A practical look at the Incoterms that matter most in bulk metals and minerals shipments — where cost and risk transfer, and what to confirm before you book.
Incoterms are the standard rules that say who arranges and pays for transport, and exactly where the risk for the goods passes from seller to buyer. In bulk metals and minerals trade — where cargoes are large, often shipped break-bulk or in containers, and move through ports — getting the trade term right avoids expensive disputes.
The terms you will see most
EXW (Ex Works): the buyer takes over at the seller's site and handles everything after. FOB (Free On Board): the seller delivers the goods on board the vessel at the named load port; risk passes there and ocean freight is the buyer's. CFR (Cost and Freight): the seller pays freight to the destination port, but risk still passes at the load port. CIF (Cost, Insurance and Freight): like CFR, with the seller also arranging insurance to destination. DAP/DDP: the seller delivers much further down the chain, with DDP including import clearance and duties.
Cost transfer and risk transfer are not the same
A common and costly misunderstanding is to assume that because the seller pays freight (CFR or CIF), the seller also carries the risk during the voyage. Under those terms the risk has already passed to the buyer at the load port. If cargo is damaged at sea on CIF terms, it is the buyer's insurance claim — which is why confirming the insurance cover actually provided under CIF matters.
Name the place precisely
An Incoterm is incomplete without a named place: "FOB" alone is ambiguous, "FOB Port of Santos" is not. State the exact load or destination point, and record it on the quote and the contract so there is no doubt where obligations change hands.
Match the term to the cargo and the ports
Bulk and hazardous materials (for example sulfur) have handling, stowage and port requirements that can affect which term is practical. Agree who handles port charges, demurrage and clearance, and choose a term that puts control where each party can actually exercise it.
Quote with the terms built in
On Sentrick Metals & Minerals, Incoterm, origin, destination port and packaging are part of a buying request and a quote. Post a buying request with your delivery terms stated up front.
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