Logistique
FOB, CIF, EXW: picking the right incoterm when sourcing from Egypt
Three incoterms cover 80% of B2B Egypt → Europe transactions. Here is how to choose between FOB, CIF and EXW depending on how much of the logistics chain you control — with typical costs at the ports of Alexandria and Damietta.
Why your incoterm choice matters more than you think
An incoterm is not an administrative detail. It fixes who pays what, who carries the risk and who handles customs at every step between the factory in Cairo and your warehouse in Rotterdam, Marseille or Hamburg. Picking the wrong one typically costs 4% to 9% of the cargo value — that is €720 to €1,620 of unexpected fees on a 20' container of cotton worth €18,000.
The three incoterms covering the vast majority of Egypt → EU flows are EXW, FOB and CIF. We leave aside DDP (rare and very risky for the seller) and FCA (useful but seldom used at Egyptian ports).
EXW (Ex Works) — cheapest, most work on you
The seller makes the goods available at their factory or warehouse. You arrange everything else: inland trucking to the port (Alexandria or Damietta), Egyptian export customs, port handling, sea freight, EU customs, last-mile delivery.
- When to pick it: you already have a reliable Egyptian forwarder, you want the lowest possible price and you can handle export customs locally.
- Typical add-on: factory price + ~€180-280 of inland trucking + ~€150-220 of export formalities.
- Common trap: Egyptian customs sometimes refuse to process the file if the foreign buyer has no locally-appointed agent. Without a forwarder you can be stuck 5 to 10 days.
FOB (Free On Board) — the most common compromise
The seller delivers the goods on board the vessel at the port of shipment, with export customs cleared. You take over from the moment they cross the ship's rail: sea freight, insurance, EU customs.
- When to pick it: by default. It is the standard for 60% of Egypt → EU transactions.
- Typical add-on at Alexandria: EXW + ~€90-140 of port terminal handling charges + export customs included.
- Practical tip: always make sure the contract reads FOB Alexandria, Egypt and not FOB seller's warehouse — the latter is a common misnomer that exposes you to inland trucking risk.
CIF (Cost, Insurance and Freight) — the simplest for the buyer
The seller takes on sea freight and insurance up to the port of destination. You only handle unloading, EU customs and last-mile delivery.
- When to pick it: you want an all-in price and you do not yet have a sea-freight forwarder of your own. Convenient for the first few volumes.
- Typical add-on: FOB + ~€600-1,100 of sea freight (Alexandria → Marseille, 20' container) + ~€70-130 of insurance.
- Common trap: the insurance the seller provides is often the bare minimum (Institute Cargo Clauses, clause C), which does not cover in-transit theft. Ask explicitly for clause A coverage.
The 30-second decision rule
| Do you have a forwarder in Egypt? | Do you control the sea freight? | Recommended incoterm | | --- | --- | --- | | Yes | Yes | EXW or FOB (FOB is safer) | | Yes | No | CIF | | No | No | CIF, systematically |
What to negotiate regardless of the incoterm
Whichever incoterm you pick, ask in writing for: (a) the certificate of origin issued by the Egyptian Chamber of Commerce (~€80 per shipment), (b) dated loading photos, and (c) the original bill of lading sent via DHL before the vessel's arrival (otherwise you wait 3-5 days at the EU port to release the cargo).
That level of contractual detail is what separates the experienced buyer from the rookie — and what cuts your exposure to 80% of the classic disputes on Egyptian flows.