The most common confusion on first-time Egyptian commodity orders is what the seller is responsible for at each Incoterm. Buyers sometimes ask for CIF when they mean FOB plus freight; sellers sometimes quote FOB when the buyer expected CIF. Both sides waste time. Here is the plain-language version.

Incoterms 2020 — the four that matter for bulk export

Incoterms (International Commercial Terms) are published by the ICC and revised every decade. The current set is Incoterms 2020. For bulk commodity export from Egypt, four of the eleven Incoterms account for ~95% of contracts:

  • FOB (Free On Board)
  • CFR (Cost and Freight)
  • CIF (Cost, Insurance, and Freight)
  • EXW (Ex Works) — rare for export, sometimes used for FCL container moves

There are also FCA, FAS, CPT, CIP, DAP, DPU, DDP — each used in specific niches but uncommon in salt / cement / fertilizer bulk vessel trade.

FOB — the most common bulk Incoterm

Free On Board, Port of Loading (e.g. FOB Damietta).
  • Seller responsibility: Goods cleared for export, loaded onto vessel at the named port of loading. Risk transfers when goods cross the ship's rail.
  • Buyer responsibility: Ocean freight, insurance, import customs at destination.

FOB is the default for bulk vessel contracts where the buyer has their own chartering relationships or works with a freight forwarder. The buyer nominates the vessel; the seller loads it.

Document set: Commercial Invoice, Packing List, Bill of Lading (issued by the carrier the buyer nominates), Mill Test Certificate / Certificate of Analysis, Certificate of Origin. Phytosanitary if required.

CFR — seller handles ocean freight, no insurance

Cost and Freight, Port of Discharge (e.g. CFR Mombasa).
  • Seller responsibility: Everything in FOB plus ocean freight to the named port of discharge. Risk still transfers at FOB origin point.
  • Buyer responsibility: Insurance, import customs.

CFR is common when the buyer wants the seller to handle freight (because the seller has scale-based freight relationships) but does not want the seller to handle insurance (because the buyer has their own marine cargo policy that covers all their imports).

CIF — seller handles freight AND insurance

Cost, Insurance, and Freight, Port of Discharge (e.g. CIF Lagos).
  • Seller responsibility: Everything in CFR plus marine cargo insurance covering at least the buyer's expected loss exposure (typically 110% of CIF value).
  • Buyer responsibility: Import customs only.

CIF is the easiest Incoterm for first-time buyers. The seller handles everything up to the destination port. Important: CIF insurance is typically minimum-coverage (Institute Cargo Clauses C). Buyers who want all-risk coverage should either request ICC A explicitly in the contract or buy supplementary insurance.

EXW — seller's least responsibility

Ex Works (e.g. EXW Cairo warehouse).
  • Seller responsibility: Goods made available at the seller's premises. That is it.
  • Buyer responsibility: Loading, transport to port, export customs clearance, ocean freight, insurance, import customs.

EXW is rare in bulk vessel trade. It comes up in FCL container moves where the buyer has a freight forwarder who does door-to-door pickup. It does not include export customs clearance — that is uniquely the buyer's burden under EXW.

What this means for your RFQ

When you ask for a quote, specify:

  • Incoterm (FOB / CFR / CIF / EXW)
  • Named port (loading port for FOB / EXW, discharge port for CFR / CIF)
  • Currency (USD default, EUR available)
  • Quantity unit (per MT for salt and cement, per MT or per FCL for fertilizer)
  • Packing (bulk vessel, 50 kg PP bags, jumbo bags, etc.)

A complete RFQ gets a precise quote in 24 hours. A partial RFQ ("how much for 5000 MT salt?") needs a clarifying email and adds 24-48 hours.

Common trip-up: "FOB plus freight"

Buyers sometimes ask for "FOB Damietta plus freight to Mombasa". This is functionally CFR Mombasa but technically not a recognized Incoterm. Sellers should clarify and re-quote as CFR explicitly so the contract and the L/C wording match the actual responsibility allocation.

The Egyptian three-port routing

For salt, cement, and most bulk exports, we route through one of three ports:

  • Damietta — Mediterranean, closest to Levant, Black Sea, EU
  • Alexandria / El Dekheila — Mediterranean, closest to North/West Europe
  • Ain Sokhna — Red Sea, closest to GCC, India, East Africa

The CFR / CIF freight quote depends materially on which port we load from. We usually quote both options and the buyer picks based on freight + transit time.