Two suppliers can quote the same fruit concentrate at very different prices and still both be commercially reasonable.
Why?
Because a quotation is not defined by the product price alone.
The point at which freight, insurance, customs responsibilities and transportation risk move between seller and buyer can substantially change the real cost of a shipment.
This is where Incoterms® matter.
ICC confirms that Incoterms® 2020 remains the current edition of the internationally recognised rules, with 11 terms used to clarify responsibilities between buyers and sellers in international goods transactions.
FCA — Free Carrier
FCA is often worth considering for containerised cargo.
Under the commercial structure of FCA, the seller delivers the goods to the carrier or agreed place under the defined Incoterm arrangement, after which responsibilities shift according to the rule.
For an experienced importer with established freight contracts, this can provide significant control over international transportation.
FOB — Free on Board
FOB is one of the most recognisable trade terms.
However, containerised shipments deserve careful consideration when selecting between FCA and FOB.
ICC guidance specifically discusses the distinction between the two terms, and the appropriate choice depends on the transportation and delivery arrangement.
For buyers, the key point is simple:
Do not use FOB automatically just because it is familiar.
Choose the Incoterm that accurately matches the real delivery process.
CIF — Cost, Insurance and Freight
CIF generally places more of the freight-arrangement responsibility on the seller than FOB.
For buyers without strong shipping infrastructure, receiving a price that includes ocean freight and defined insurance obligations can make budgeting easier.
But a CIF price should not automatically be interpreted as a fully delivered price.
Destination charges, customs clearance and inland transportation may still need to be considered depending on the transaction.
DAP — Delivered at Place
DAP can provide the buyer with a quotation much closer to the delivery destination.
It can be attractive when the importer wants the supplier to manage more of the transportation chain.
However, responsibilities around import customs and taxes must still be understood clearly.
ICC has also highlighted important differences between DAP and DDP, particularly regarding import responsibilities.
Why this matters for fruit ingredients
Bulk fruit ingredients create specific logistical considerations.
A container can contain many drums or substantial net product weight.
Differences in freight rates, port costs, inland trucking and temperature-controlled requirements can materially change the final landed cost per kilogram.
A concentrate that looks cheaper under FCA may ultimately cost more than a higher CIF quote once freight is included—or the opposite may be true.
Compare offers on the same commercial basis
Procurement teams should normalise quotations before comparing suppliers.
If Supplier A quotes FCA and Supplier B quotes CIF, the numbers should not be placed next to each other without calculating the missing logistics costs.
The same principle applies to packaging.
A price for a different drum weight or container loading configuration is not necessarily equivalent.
Incoterms do not replace the sales contract
Another common mistake is assuming that an Incoterm defines everything about the sale.
ICC notes that Incoterms define important delivery responsibilities and risk allocation, but they are not a substitute for the broader sales agreement.
Quality specification, payment terms, claims procedures, inspection, documentation and other commercial conditions still need to be agreed separately.
Juicerfo Insight
The most useful question is not:
“What is your price per tonne?”
It is:
“What is the price per tonne under which Incoterm, at which named place, with which packaging and documentation?”
That single change makes international price comparisons significantly more accurate.