Introduction

In international food trade, freight cost negotiation is not just a line item it’s a strategy. Whether you’re shipping wood-pressed oils, ghee, or dry foods, negotiating your freight terms smartly can protect your margins and avoid hidden costs. Here’s how exporters and importers can build clarity and trust through better freight terms.

Understand Your Freight Terms: FOB vs CIF vs Ex-Works

Each incoterm affects your responsibility, cost, and risk.

  • FOB (Free on Board): Seller delivers goods to the port. Buyer pays for sea freight.

  • CIF (Cost, Insurance, Freight): Seller includes sea freight and insurance in price.

  • Ex-Works: Buyer handles everything from the seller’s gate onward.

Pro Tip: Use FOB when you have better shipping deals; go CIF if you want full support from the exporter.

Get Freight Estimates Early

Request freight cost estimates from the exporter during proforma invoice stage.
Ask for:

  • Port of Loading

  • Carrier options

  • Container size (LCL/FCL)

  • Transit time

This avoids surprises and lets you compare freight offers if needed.

Ask for Multiple Freight Options

Good exporters like Manjulam Impex can offer:

  • Sea freight (standard)

  • Air freight (urgent or samples)

  • Multimodal (for complex logistics)

Compare all in terms of cost, time, and customs impact.

Clarify What’s Included in Freight

Sometimes CIF doesn’t include destination charges (like port handling, customs, etc.).
Before finalizing:

  • Ask for a breakdown of what’s included

  • Confirm who pays for documentation, loading, clearance, etc.

Clear freight terms = smooth delivery and fewer disputes.

Negotiate Based on Volume or Frequency

If you’re planning bulk orders or repeat shipments, you can:

  • Ask for discounted freight rates

  • Lock in fixed shipping costs for 3 to 6 months

  • Request preferred shipping lines or faster lanes

Exporters like Manjulam Impex often support repeat buyers with better freight terms.

Conclusion

Many new importers think freight costs are non-negotiable but in food export, especially from India, that’s far from true. By understanding terms, asking the right questions, and partnering with transparent exporters like Manjulam Impex, you can save costs, plan better, and build long-term trade success.