If you are importing hotel furniture from China, the shipping term you choose can add or remove $50,000+ from a 200-key project budget. Yet most procurement managers default to FOB without understanding what they are signing up for. Here is what each term actually means — with real numbers.
The seller is responsible for getting goods onto the ship at the port of departure. Everything after that — ocean freight, insurance, customs, duties, inland delivery — is your responsibility.
Best for: Experienced importers with their own freight forwarder and customs broker. Gives maximum control over shipping route and costs.
The seller pays for goods, insurance, and ocean freight to your destination port. You handle import clearance, duties, and delivery from port to site. Risk transfers when goods load onto the ship.
Best for: Buyers who want predictable freight costs but prefer to handle customs and inland transport themselves.
The seller handles everything — production, freight, insurance, customs clearance, duties, and delivery to your project site. You receive goods at your door with no additional costs.
Best for: First-time importers, boutique hotel owners, or anyone who wants a single price and zero logistics management. This is the term we recommend for most clients.
Below is a side-by-side cost breakdown for the same $1.2M FOB China FF&E order under each shipping term. All figures based on actual 2025–2026 project data.
| Cost Component | FOB | CIF | DDP |
|---|---|---|---|
| Product cost (FOB) | $1,200,000 | $1,200,000 | $1,200,000 |
| Ocean freight | $18,000–28,000 | Included | Included |
| Marine insurance | $3,000–5,000 | Included | Included |
| US customs duties (~35%) | $420,000 | $420,000 | Included |
| Customs broker fees | $1,500–3,000 | $1,500–3,000 | Included |
| Port charges & demurrage risk | $2,000–8,000 | $2,000–8,000 | Included |
| Inland delivery (port to site) | $5,000–12,000 | $5,000–12,000 | Included |
| Total landed cost | $1,650–1,676K | $1,629–1,643K | $1,680K (fixed) |
Estimates based on 200-key upscale hotel, 3×40' containers, US East Coast destination. FOB and CIF costs vary with freight market. DDP is a fixed price.
If your container sits at port waiting for customs clearance, the shipping line charges demurrage — typically $150–300/day per container. A 2-week customs delay on 3 containers adds $6,300–$12,600. Under DDP, we absorb this risk.
Importers over $250K annual duties need a continuous customs bond ($500–1,000/year) or a single-entry bond (0.5% of invoice value). First-time importers are often surprised by this $5,000–10,000 cost.
If you cannot receive delivery immediately, warehousing costs $2–5/pallet/week. A 200-key project generates 40–60 pallets. Two weeks of storage: $3,200–6,000.
Standard delivery is curbside. If you need inside delivery, unpacking, assembly, and debris removal, add 8–15% of product cost. Under our DDP terms, we include white-glove delivery as an option.
For most hotel and commercial projects, DDP with a duty cap provides the best risk-to-cost ratio. You get a single fixed price that includes everything — production, freight, duties, and delivery. No surprise invoices. No demurrage risk. No customs bond required.
The premium over FOB is typically 3–5% — less than most clients budget for tariff contingency and logistics management. And for first-time importers, DDP eliminates the learning curve entirely.
Send us your FF&E schedule. We will return a single DDP price per item — no hidden fees, no surprise invoices. Within 48 hours.
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