Choosing Between FOB, CIF, and EXW for Caustic Soda Flake Purchases

Why Incoterms Matter for Caustic Soda Flakes

Caustic soda flakes are hazardous, bulk‑traded chemicals whose landed cost depends heavily on shipping terms, not just price per metric ton. Incoterms like EXW, FOB, and CIF define who pays for freight and insurance, who handles export/import formalities, and where risk transfers from seller to buyer. Choosing the wrong term can lead to hidden port charges, delays, or unexpected risk exposure for buyers of sodium hydroxide.​

EXW: Maximum Control, Maximum Responsibility

Under EXW (Ex Works), the seller makes the goods available at their premises, and the buyer is responsible for all steps from loading to export, main carriage, import clearance, and final delivery. This term often comes with the lowest headline product price but requires buyers to have strong logistics capability and trusted freight partners, especially for corrosive solids like caustic soda. EXW is typically suitable for experienced importers who want full control over routing, carriers, and consolidated shipments, and can negotiate competitive freight rates.​

FOB: Shared Responsibility and Cost Optimization

Under FOB (Free on Board), the seller handles export clearance and delivery of the goods onboard the vessel at the named port of shipment; risk and cost then transfer to the buyer once the cargo is loaded. For caustic soda flakes, FOB is a popular choice because buyers control ocean freight and insurance while the seller manages local handling and export paperwork in the origin country. Many chemical importers prefer FOB because it balances control and complexity, allowing them to optimize freight and insurance without managing every step at origin.​

CIF: Convenience and Built-In Insurance

Under CIF (Cost, Insurance, and Freight), the seller arranges and pays for ocean transport and minimum insurance to the named destination port, with risk still passing to the buyer once goods are loaded on the vessel. Buyers often choose CIF when they want a simpler procurement process, bundling chemical price, freight, and insurance into a single quote. For caustic soda flakes, CIF can be useful for smaller buyers or those without strong logistics teams, although total cost is often higher due to seller mark‑ups on freight and insurance.​

How to Choose the Right Term for Your Business

• Choose EXW if you have experienced logistics staff, strong freight forwarder relationships, and want maximum control and potential cost savings.​

• Choose FOB if you want the seller to handle export steps but prefer to negotiate your own freight and insurance for better transparency and rates.​

• Choose CIF if you are new to importing caustic soda, want a single‑supplier solution, or lack internal capacity to manage overseas freight and marine insurance.​

• Always compare quotes on a “landed cost” basis—adjusting for freight, insurance, port charges, and risk—not only on the product price under different Incoterms.