When you import wooden hangers or kitchenware from China, your factory will ask: FOB, CIF, or DDP? If you’re not sure what these mean, you could end up paying thousands in unexpected freight and insurance costs.
This guide breaks down the three most common shipping terms for hanger buyers — and which one makes sense for your business.
What Is Incoterms?
Incoterms (International Commercial Terms) are standardized rules that define who pays for what during international shipping. They determine:
- Who arranges and pays for freight
- Who pays for insurance
- When risk transfers from seller to buyer
- Who handles customs clearance
FOB (Free On Board) — Most Common
What the factory does: Produces the goods, delivers them to the departure port (e.g., Shenzhen / Guangzhou), handles export customs, and loads them onto the ship.
What you pay: Ocean freight, insurance, destination port charges, customs duty, and last-mile delivery.
FOB Pros & Cons
- Pros: Factory quote is lower; you control your own freight forwarder; best for large orders where you have an established logistics partner
- Cons: You manage the shipping side; unexpected port fees; more paperwork
CIF (Cost, Insurance & Freight)
What the factory does: Everything in FOB, plus pays for ocean freight and insurance to your destination port.
What you pay: Destination port charges, customs duty, and last-mile delivery.
CIF Pros & Cons
- Pros: Factory handles ocean freight; simpler than FOB; good for first-time importers
- Cons: Factory marks up freight; you still handle import customs and delivery; insurance coverage is often minimal
DDP (Delivered Duty Paid) — Door to Door
What the factory does: Everything. Produces goods, handles export, ocean freight, insurance, destination customs clearance, duty payment, and delivers to your warehouse.
What you pay: One price. The factory handles everything.
DDP Pros & Cons
- Pros: Zero logistics hassle; predictable all-in cost; best for small / trial orders
- Cons: Most expensive per unit; factory marks up logistics; less transparency; customs duty included in price
Which Should You Choose?
| Situation | Best Term |
|---|---|
| First-time importer, small order (<1,000 pcs) | DDP |
| Have your own freight forwarder, container load | FOB |
| Medium order, no logistics team | CIF |
| High-value goods, want insurance coverage | CIF or DDP |
| Reordering with established supplier | FOB (you know the numbers) |
Typical Shipping Costs (Shenzhen to US West Coast)
For a 20′ container (~8,000–12,000 wooden hangers):
- Ocean freight: $1,500–$3,500 (depends on season)
- Insurance: ~0.3%–0.5% of goods value
- US customs duty (wooden hangers): ~3.4% of FOB value
- Bond + customs clearance: ~$150–$300
- Inland trucking (port to warehouse): ~$500–$1,500
Lead Time by Shipping Method
- Express (DHL/FedEx): 3–5 days, $8–$15/kg — samples only
- Air freight: 7–10 days, $4–$7/kg — urgent small orders
- Sea freight LCL (less than container): 25–35 days, $60–$120/CBM — 1–5 pallets
- Sea freight FCL (full container): 25–35 days, best per-unit rate — 10,000+ pcs
Get a Shipping Quote
Tell us your destination port or warehouse address, and we’ll provide FOB, CIF, and DDP quotes side by side so you can compare.
Related: MOQ Explained: Factory Order Minimums | How to Import Wooden Hangers from China