Introduction
When importing tomato paste in bulk, choosing the right Incoterms—EXW, FOB, or CIF—can significantly affect your final landed tomato paste drum price. Each trade term defines different responsibilities, risks, and costs between buyer and seller. Failing to understand how Incoterms work can lead to overpaying for freight, unexpected fees, or unclear insurance coverage.
In this article, we explain how EXW, FOB, and CIF terms impact tomato paste pricing, and help you decide which term best suits your business needs.
1. What Are Incoterms and Why Do They Matter?
Incoterms (International Commercial Terms) are standardized trade terms published by the ICC (International Chamber of Commerce) to define:
- Who pays for what (freight, insurance, export clearance)
- Where risk transfers from seller to buyer
- Who arranges logistics
In the tomato paste trade, most 220L drums are shipped in full container loads (FCL), so small differences in Incoterms can add up to large cost variances.
2. Comparing EXW, FOB, and CIF for Tomato Paste Purchases
| Term | Full Form | Seller’s Responsibility | Buyer’s Responsibility | Typical Use |
|---|---|---|---|---|
| EXW | Ex Works | Just factory gate delivery | All freight, export, insurance, import | For buyers with strong logistics |
| FOB | Free on Board | Delivery to port + loading on ship | Sea freight, insurance, import | Balanced risk; common in bulk deals |
| CIF | Cost, Insurance & Freight | Until destination port (freight + insurance included) | Port handling, inland delivery, import | Turnkey option for importers |
3. EXW: Lowest Unit Price, Highest Buyer Responsibility
🔍 Key Features:
- Buyer picks up the goods from supplier’s warehouse.
- Seller offers the lowest base price.
- Buyer manages export documents, trucking, customs, sea freight, etc.
✅ When to Choose:
- You have local agents in China/Turkey or a trusted freight forwarder.
- You want full control over freight and cost optimization.
💡 EXW tomato paste drum price may look cheapest (e.g., $860/MT), but your actual landed cost may rise sharply if logistics aren’t efficient.
4. FOB: A Balanced Option for Most Importers
🔍 Key Features:
- Seller handles inland transport, customs clearance, and port loading.
- Buyer takes over at the port of origin.
✅ When to Choose:
- You want the seller to manage local Chinese/Turkish formalities.
- You’ll use your own freight forwarder for ocean freight.
- You’re buying full container loads (FCL).
Example: FOB Qingdao port at $900/MT may beat CIF if you’ve negotiated cheaper sea freight.
5. CIF: Most Convenient, but Often Higher Price
🔍 Key Features:
- Seller delivers to buyer’s port of destination, with freight and marine insurance included.
- Buyer only arranges port clearance and local inland transport.
✅ When to Choose:
- You’re importing to Africa, South America, or small-volume ports.
- You don’t want to deal with ocean freight negotiations.
CIF tomato paste drum price may be $950–980/MT, including shipping to Mombasa, Lagos, or Callao.
6. Real Example: How Incoterms Affect Total Cost
Let’s say you’re buying 30–32 Brix tomato paste in 220L drums from China:
| Term | Unit Price (USD/MT) | Buyer’s Add-on Costs | Total Landed Cost |
|---|---|---|---|
| EXW | $860 | ~$150 (freight, docs, trucking) | ~$1,010/MT |
| FOB Qingdao | $900 | ~$100 (freight, handling) | ~$1,000/MT |
| CIF Mombasa | $980 | ~$30 (port + inland) | ~$1,010/MT |
Depending on your logistics capacity, FOB or CIF often deliver the best balance of price and convenience.
7. Tips for Choosing the Right Incoterm
✅ Compare total landed cost, not just per-MT price
✅ Check port and inland access in your country
✅ Ask suppliers for all three quotes (EXW, FOB, CIF) for comparison
✅ Use EXW only if you trust your freight partner fully
✅ Consider CIF for remote markets where reliable shipping is a concern
Conclusion
Choosing between EXW, FOB, and CIF has a direct impact on your tomato paste drum price and profitability. While EXW gives you full control and the lowest base price, it comes with more responsibility and risk. FOB is a balanced choice, and CIF offers convenience at a slightly higher cost.
The best option depends on your internal logistics capabilities, destination port, and preferred trade setup. Always compare Incoterm-based quotes side-by-side before making a decision.
For tailored EXW/FOB/CIF quotes to your port, reach out to our team at info@taichysupply.com or visit www.taichytomato.com.
