FOB Qingdao vs CIF: Shipping Steel From China Explained
The incoterm you choose changes your cost visibility, insurance and risk. There is no universally right answer, but for steel there are a few practical rules.
The three common terms
- FOB (Free On Board): the seller delivers the goods cleared on board at Qingdao. You arrange and pay the freight. Best when you have a freight forwarder and want control of shipping cost.
- CFR (Cost and Freight): the seller books the vessel and pays freight to your port; risk transfers on loading. Simple, but you buy insurance yourself.
- CIF: the seller books freight and insurance. Convenient for first orders, though insurance cover is usually the minimum required by law.
How steel actually ships
Coils, plate bundles and sections up to about 25 t ship in 20 ft or 40 ft open-top or flat-rack containers with steel strapping and dunnage. Full vessel break-bulk becomes economical above roughly 500 t. Standard export packing is waterproof paper plus steel strapping, and coils can be eye to sky or eye to side depending on discharge facilities.
Timelines from Qingdao
Production for stock-range products takes 15-25 days after deposit, plus 5-7 days for customs and booking. Sailings from Qingdao run weekly to South America, West Africa, the Middle East and Southeast Asia; transit ranges from 18 days (Southeast Asia) to 40+ days (West Africa).
Documents you should receive
- Commercial invoice and packing list
- Bill of lading (telex release available)
- Mill test certificate EN 10204 3.1 per heat
- Certificate of origin (CO / Form where applicable)
- Insurance certificate for CIF shipments
Related reading
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