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Jber Coffee LimitedGreen Coffee · Origin Supply

Trade terms

FOB Coffee

FOB is the most common basis for East African green coffee, and the one where the landlocked origins introduce complications worth understanding before signing.
Last reviewed 2 min read

Quick answer

Under FOB the seller delivers the coffee on board the vessel at the named port of shipment, clears it for export, and bears cost and risk to that point. From the moment the goods are on board, ocean freight, insurance, import clearance and onward delivery are the buyer’s cost and risk.

What each party does

FOB
seller paysbuyer pays
CFR
seller paysbuyer pays
CIFseller also contracts minimum cargo insurance
seller paysbuyer pays
Cost borne by seller Risk passes to buyer

Under all three terms risk passes when the goods are on board at the port of loading. CFR and CIF move the freight cost to the seller — they do not move the risk transfer point.

Cost and risk under FOB, CFR and CIF.
FOB responsibilities
SellerBuyer
Preparation and packingYes—
Inland transport to portYes—
Export clearance and documentsYes—
Terminal handling at originYes—
Loading on boardYes—
Ocean freight—Yes
Marine insurance—Yes
Import clearance and duties—Yes
Delivery to warehouse—Yes
Risk after goods on board—Yes

The East African complication

Three of these six origins are landlocked

Uganda, Rwanda, Burundi and Ethiopia have no coastline. Coffee travels several hundred to well over a thousand kilometres by road before it reaches a port. Under FOB that entire inland leg is the seller’s cost and risk — but the transit time is a shared planning problem, and it is the single largest source of schedule variance on these origins.

Typical routing from origin to port
OriginUsual portCorridor
TanzaniaDar es Salaam (or Tanga)Domestic road from Moshi or Mbeya
KenyaMombasaDomestic road or rail from Nairobi
UgandaMombasa (or Dar es Salaam)Northern Corridor (or Central Corridor)
RwandaMombasa or Dar es SalaamNorthern or Central Corridor
BurundiDar es Salaam or MombasaCentral or Northern Corridor
EthiopiaDjiboutiRoad from Addis Ababa
See ports and logistics and the individual origin pages for routing detail.

Practical consequence: an FOB contract from a landlocked origin should have a realistic shipment window built around inland transit and port congestion, not around the date the coffee is ready at the mill.

Where FOB is the right choice

  1. 1You have freight rates. A buyer with a forwarder relationship and volume usually beats an exporter’s freight cost.
  2. 2You have your own marine cover. An open cargo policy is generally cheaper and better than per-shipment insurance.
  3. 3You want carrier control. Choosing the line, the routing and the schedule matters if arrival timing is tight.
  4. 4You want cost transparency. FOB separates the coffee price from the freight, which makes origin comparisons cleaner.

If none of those apply — a first import, a small volume, no forwarder — CFR or CIF will usually be simpler.

What to nail down in an FOB contract

  • The named port. "FOB East Africa" is not a term. Name Mombasa, Dar es Salaam or Djibouti.
  • The Incoterms version. State which edition applies.
  • Who books. Under FOB the buyer books the vessel; agree how nomination and booking details are communicated.
  • Documents. Which documents the seller provides and by when — see shipping documents.
  • Demurrage and detention. Who bears them if the vessel or the container is delayed, and from what point.
  • Weight and quality determination. Where each is finally determined.

FOB quotations

We quote FOB Dar es Salaam, Mombasa and Djibouti as standard, and CFR or CIF on request. Tell us your preferred basis.

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Frequently asked questions

What does FOB mean in coffee?
Free On Board. The seller delivers the coffee on board the vessel at the named port of shipment, having cleared it for export and paid all costs to that point. Cost and risk pass to the buyer once the goods are on board.
Who pays for shipping under FOB?
The buyer. FOB covers everything up to and including loading on board at origin. Ocean freight, marine insurance, import clearance and onward delivery are the buyer’s responsibility.
Does FOB include insurance?
No. Neither FOB nor CFR includes insurance. Only CIF obliges the seller to contract cover, and even then only at a minimum level. Under FOB the buyer should have marine cover in place before the goods are loaded.
How does FOB work for landlocked origins like Uganda or Ethiopia?
The seller bears the inland leg to the named port — Mombasa for much Ugandan coffee, Djibouti for Ethiopian. That road transit is substantial and is the main source of schedule variance, so the shipment window should be built around it rather than around mill readiness.

Tell us the coffee you need

Lots can be specified by origin, region, process, grade, screen, moisture, defect tolerance, crop year and packaging. Send what you know and we will confirm what each origin realistically supports.

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