FOB vs CIF vs DDU: Which Shipping Term Is Best for Importing EVs from China?
Compare FOB, CIF, and DDU shipping terms for importing electric vehicles from China. Learn why most EV factories prefer FOB.
FOB (Free On Board): The Industry Standard
The seller delivers goods onto the vessel at origin port. From that moment, all costs and risks transfer to the buyer.
Pros: Control over shipping, insurance flexibility, transparency, group buy compatibility. Cons: You manage logistics, freight cost risk, more moving parts.Most Chinese EV factories prefer FOB because it is simpler and lower risk for them.
CIF (Cost, Insurance, and Freight)
The seller pays for ocean freight and basic insurance to the destination port. Risk still transfers at origin.
The Hidden Cost: Factories mark up freight 10-20%. Insurance is typically minimum coverage only. Less competitive pressure on freight costs.Pros: Simplicity, good for beginners, predictable cost. Cons: Higher total cost, minimal insurance, risk still transfers at origin, no group buy benefit.DDU (Delivered Duty Unpaid) / DAP
The seller delivers to a named destination with all transportation paid, without import duties.
Pros: Maximum convenience, reduced logistics risk. Cons: Highest total cost (15-25% above FOB), less control, fewer factories offer it.Cost Comparison: 10 Electric Motorcycles to Veracruz
| Component | FOB | CIF | DDU |
|---|---|---|---|
| Unit price | $1,320 | $1,450 | $1,620 |
| Freight/unit | $85 | Included | Included |
| Insurance/unit | $15 | Included | Included |
| Port handling/unit | $25 | $25 | Included |
| Total per unit | $1,445 | $1,475 | $1,620 |
| Extra vs FOB | -- | +$300 | +$1,750 |
How Group Buying Handles FOB + Freight
[EV GroupBuy](/how-it-works) uses FOB + platform-arranged freight: FOB pricing transparency with CIF convenience, plus [group buy freight savings](/blog/container-group-buying-shared-shipping-ev-import).
[Browse products](/products) to see FOB prices and real-time freight estimates.