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Why CFR and FOB Prices Look the Same But Cost Your Business Differently

May/21/2026 Blogs
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A practical guide for procurement managers sourcing polymer and chemical raw materials from Asia to Africa

You receive two quotes for the same product. Same polymer. Same origin. Same quantity.

One is $1240/MT FOB Ningbo. The other is $1,350/MT CFR Mombasa/Tema.

Most buyers pick the cheaper number. That's a costly mistake.

CFR and FOB are not just pricing labels — they define who carries the risk, who pays the freight, and what your polymer costs at your factory gate. Getting this wrong doesn't just affect one shipment. It distorts your cost models, your margins, and your procurement decisions at scale.

This guide breaks it down clearly, with real numbers, so you never confuse the two again.

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