CIF Quotation & Ocean Freight Volatility: Hidden Risks for Shisha Charcoal Buyers

Many buyers compare only CIF total price and overlook freight volatility risk.

Under CIF terms, the seller covers ocean freight and insurance, but freight rates are not fixed. Bunker surcharges, congestion fees and spot rates change fast. Without a price-lock clause, sudden rate hikes lead to disputes or margin loss for suppliers.

Two practical solutions:

1. Quote separately: FOB price plus freight, with clear validity period for freight;

2. For long-term LOI, set a floating threshold for freight cost sharing.

Shisha charcoal is UN1361 dangerous goods. Container space is tighter, and freight surges more sharply in peak months.