Indonesian Vegetables Incoterms: 2026 Buyer Guide

CIF vs FOB for Indonesian vegetable reefers: what actually changes, where risk really passes, how to avoid temperature disputes, and the exact clauses to copy into your contract. Practical, field-tested advice from the Indonesia‑Vegetables Team.

If you get CIF vs FOB wrong on a reefer of Indonesian vegetables, two things usually happen. You lose control of the cold chain and your insurance claim gets denied. We’ve seen both. The good news is you can lock down risk with the right term plus four lines in your contract.

The quick answer: CIF or FOB for Indonesian vegetable reefers?

Here’s the thing. Incoterms 2020 don’t manage temperature. Contracts and operations do.

Choose FOB (or better, FCA) when you want control of the carrier, route, transit time, and reefer instructions. You take more coordination, but you control the cold chain from the port gate onward.
Choose CIF if you want us (the seller) to arrange ocean freight and basic insurance to your port. But upgrade the insurance and write the temperature responsibilities into the contract. Otherwise, you own the pain when a box runs warm at mid‑ocean.

In our experience, buyers who move high‑risk lines like Indonesian chilies or leafy greens prefer FOB/FCA to select direct sailings and shorter dwell. Steadier items like onions and carrots can work under CIF with upgraded cover and tight clauses.

Is CIF or FOB better for importing Indonesian vegetables in a reefer container?

If your top priority is transit control and predictable handling, go FOB or FCA. You book the line, specify “no transshipment,” pick the service window, and set monitoring alerts. That limits temperature excursions.
If your team is light on logistics and you mainly need landed cost predictability, CIF can work. Just don’t accept minimum insurance and vague temp wording. Specify the setpoint, ventilation, and data logging in the sales contract.

Practical takeaway: pick the term that lets you control the biggest risk in your lane. For perishables, that’s temperature and time in transit, not just a few dollars in freight.

What really changes under FOB vs CIF for reefers

Booking and routing. Under FOB, you book the carrier. Under CIF, the seller books. This alone determines transit time and the likelihood of transshipment.
Risk transfer. Under CIF, risk still transfers at origin when goods are on board the vessel. The seller pays freight and insurance to your port, but risk moves earlier than many buyers expect.
Insurance. CIF requires the seller to procure minimum cover. Minimum is rarely enough for fresh vegetables.

Where exactly does risk pass under FOB Surabaya for a refrigerated container?

Incoterms 2020: risk passes when the container is on board the vessel at the named port of shipment. Example: “FOB Surabaya (Tanjung Perak).” Once the box is lifted on board, risk is yours. Everything before that (export clearance, terminal handover, pre‑cool, port plug‑in while awaiting load) is the seller’s risk.

How does choosing CIF affect my ability to select the carrier, route, and transit time?

Under CIF, the seller chooses the carrier and route that meets the shipment date. You can request preferred lines and non‑stop services, but unless the sales contract makes them mandatory, it’s not guaranteed. If you need a specific service window or direct call, FOB/FCA is usually the safer bet.

Insurance for fresh vegetables: what CIF actually covers

Under CIF, who arranges insurance and does it cover temperature damage to fresh produce?

The seller arranges insurance at minimum Institute Cargo Clauses (C) unless the contract says otherwise. ICC(C) typically excludes temperature variation unless caused by a listed peril. That’s not what you want for produce.
For vegetables in reefers, specify at least ICC(A) plus “Reefer Breakdown/Temperature Variation” extensions. Also require “refrigeration breakdown” wording and a warranty for continuous power supply. Sum insured should be 110% of the CIF value, as Incoterms anticipate.
Even with upgraded cover, most policies exclude loss from delay and inherent vice. If the box is delayed at transshipment and warms, recovery can still be tricky. This is why routing control under FOB/FCA matters.

Buyer tip: if you accept CIF, write in the policy form, insurer name, and that a full policy or certificate will be shared pre‑sailing. Ask for a specimen wording before booking.

Locking the cold chain: what Incoterms don’t say

Do Incoterms specify who controls temperature settings and data logging for reefers?

No. Incoterms are silent on setpoints, vent settings, pre‑cool, and data logging. You must put these into your sales contract or purchase order. If it’s not written, claims become “he said, she said.”

Here’s a clause set you can copy and adapt:

Reefer settings. Setpoint: [X]°C. Vent: [Y]%. Humidity control: [on/off]. Product to be pre‑cooled to within 0.5°C of setpoint before stuffing. Seller to perform and record pulp temperature checks at loading (min. 10% of cartons, three pallets per tier).
Equipment. PTI performed within 72 hours before gate‑in. No damages to door gaskets. Continuous power while at terminal. Genset required for any inland dray without shore power.
Data. At least two independent data loggers per container, door‑side top and middle, set to 10‑minute intervals. Seller to place and register logger IDs in packing list. Buyer may install additional loggers.
Carrier instructions. No transshipment unless agreed in writing. Max total transit time: [X] days. Route: [service/port pair]. Carrier to provide CSV/PDF data download upon request.
Drop‑out tolerance. Any off‑power event exceeding 30 minutes requires immediate notice to buyer with terminal log.
Insurance. If CIF/CIP, coverage to ICC(A) plus Reefer Breakdown/Temperature Variation, 110% of CIF value, warehouse‑to‑warehouse, named insurer [X]. Certificate provided pre‑sailing.
Documents. Phytosanitary certificate, packing list with lot numbers, and temperature instruction sheet signed by seller and carrier at gate‑in.

Need help tailoring these to your lanes and products? You can Contact us on whatsapp.

When should I use FCA instead of FOB if loading happens at an Indonesian packhouse?

Use FCA when handover occurs away from the vessel. For containerized cargo that’s stuffed at our packhouse then trucked to the terminal, “FCA [our facility or CY name]” reflects the real handover point and avoids arguments about who bore risk while the box waited at the terminal. Many buyers pair FCA with their own ocean booking via their forwarder.

Cost reality: CIF vs FOB for reefers

A 40’RH out of Java typically involves: origin dray, terminal handling, port plug‑in/monitoring, ocean freight, ISPS and bunker surcharges, destination THC, delivery order, demurrage/detention, and inland delivery if DAP. Under:

FOB. Seller covers export clearance, stuffing, origin THC, and risk until on board. Buyer pays ocean freight and all costs after on‑board, including destination charges and insurance.
CIF. Seller covers ocean freight and minimum insurance to the named destination port. Risk still passes on board at origin. Buyer pays destination THC, D/O, demurrage/detention, and inland.

Two hidden costs we see trip buyers most:

Destination free time. Reefers get less free time. Negotiate it with your carrier under FOB/FCA or ask the seller to secure extra free time under CIF. It’s cheaper to negotiate than to pay demurrage.
Monitoring and plug‑in at origin. If you push CY cut too early, you can pay multiple days of plug‑in. Align cargo readiness with vessel cutoffs.

Common mistakes and how to avoid them

Using CIF with only ICC(C) coverage. Upgrade to ICC(A)+Reefer Breakdown/Temperature Variation.
Saying “chilled” on a PO without numbers. Specify setpoint, vent, humidity, and logger intervals.
Using FOB for containers but assuming risk only starts at terminal. Risk passes on board, but origin terminal time is still the seller’s risk. Define who pays for PTI, plug‑in, and monitoring.
Accepting transshipment by default. Transship adds hours without power during crane operations. Ban it unless there’s no direct service.
Not tying docs to temperature. Make temp instructions a required attachment to the B/L instructions.
Leaving phytosanitary to the last minute. Under FOB/FCA/CIF, the seller handles Indonesia export clearance and phytosanitary. Build 2–3 working days lead time for inspection scheduling.

Examples from the field

Leafy greens like Baby Romaine are sensitive to short warmups. Buyers almost always choose FOB/FCA with direct sailings and strict logger rules.
Firm items like Onion and Carrots (Fresh Export Grade) can tolerate longer transits. CIF can be fine if insurance is upgraded and free time is negotiated.
Temperature‑sensitive but high‑value lines like Red Cayenne Pepper (Fresh Red Cayenne Chili) benefit from FOB/FCA so you can choose faster services and limit handling.
For retail‑ready cucumbers such as Japanese Cucumber (Kyuri), write the exact vent setting. Cucumbers dislike too much airflow.

If you’re evaluating assortments, you can also View our products to map setpoints and shelf‑life by SKU.

Short answers to the questions buyers ask us

Does CIF insurance cover temperature loss for vegetables? Only if you upgrade to ICC(A) with Reefer Breakdown/Temperature Variation and document the setpoint/handling. Minimum CIF insurance rarely pays for temperature excursions.
FOB risk transfer point for reefers in Indonesia? On‑board at the named port. Seller bears risk up to on‑board, including export clearance and terminal time.
Who books under CIF vegetables? The seller. Under FOB/FCA, the buyer.
Best Incoterm for Indonesian chili and shallot shipments? Usually FOB or FCA for routing control. Consider CIP if you want the seller to include top‑tier insurance to your door, but confirm coverage.
How to specify reefer setpoint and ventilation in contracts? Put numbers in the PO plus a “Temperature Instruction Sheet” signed by seller and acknowledged by the carrier at gate‑in.
How to avoid demurrage with CIF vegetable shipments? Pre‑advise documents, negotiate free time, book arrival slots with your cold store, and arrange customs pre‑clearance when available.
Reefer data logger requirements? Two independent loggers, 10‑minute intervals, IDs listed on the packing list, and a contractual right to obtain the carrier’s data dump.

When to consider CFR/CIF vs FCA/CIP

CFR vs CIF. CFR is like CIF without insurance. If you’re confident in your own global cargo policy, CFR can be cleaner than CIF.
FCA vs FOB. For container handover at packhouse or CY, FCA aligns with real‑world control. Add an “on‑board notation” requirement so your bank accepts documents if you’re using a letter of credit.
CIP vs CIF. CIP requires higher default insurance than CIF. For temperature‑sensitive loads, CIP with explicit reefer extensions can be safer than CIF.

Bottom line

Pick the term that gives you control of temperature and time. Then write four lines that specify setpoint, data, routing, and insurance. That’s how you prevent cost and risk from spiraling.

If you’d like us to review your draft clauses or recommend a term for a specific lane, Call us. We’re happy to walk through options and share recent carrier performance on Indonesia lanes.