A fleet procurement team receives a forklift battery quote with three price lines: EXW at the factory, FOB at the port of shipment and CIF to their own port. They need to know which term leaves them holding the risk if a pack is damaged in transit.
Under Incoterms 2020, risk moves to you earlier than most buyers expect. With EXW it passes once the goods are placed at your disposal at the seller’s premises. With FOB it passes when the goods are on board the vessel at the origin port. With CIF it passes at the same on-board point, even though the seller pays the freight and a minimum level of insurance to your port. Compare total landed cost and insurance cover, not only the price line.
How the three terms differ
- EXW (Ex Works). The seller makes the goods available at its premises, without loading them or clearing them for export. You carry cost and risk from that point, including loading and export clearance. ICC’s checklist says EXW is suitable primarily for domestic trade and points to FCA where the seller can clear the goods for export.
- FOB (Free On Board). The seller clears the goods for export and delivers them on board the vessel you nominate at the named port. Risk passes on board. FOB is for sea or inland-waterway transport only.
- CIF (Cost, Insurance and Freight). The seller contracts and pays for carriage and insurance to your named destination port, but risk still passes on board at origin. The default insurance is Institute Cargo Clauses (C), at 110% of the contract price. Import clearance, duties and destination charges are yours.
What to check in the quote
Redway’s forklift product pages list FOB, EXW and CIF, payment by T/T, L/C or PayPal, about 20 days’ delivery and container sizes from 10FT to 60FT. Ask that every quote line names the exact place (for example the port) and states “Incoterms® 2020”. Check what each price includes: origin charges, export clearance, inland haulage and insurance.
Lithium forklift batteries ship as Class 9 dangerous goods (UN3480 for lithium-ion batteries), so the carrier and forwarder must accept them. With EXW you must appoint a forwarder that handles dangerous goods and can collect from the factory. For container loads, ICC’s January 2024 guidance paper says FCA, CPT or CIP match container practice better than FOB, CFR or CIF, so ask for an FCA quote as well. Redway’s import, shipping and warranty page and wholesale pricing and logistics page give more background.
Risk limits
Incoterms govern delivery, risk and costs between buyer and seller. They do not decide who owns the goods, how payment is made or what happens after a dispute, so set those in the contract. The CIF minimum cover is basic. This article is general guidance, not legal advice.
Additional perspectives
Convert each term to landed cost per pack: origin charges, freight, insurance, duties and destination charges. If you pay by L/C, ask your bank which documents the credit needs, because a CIF sale also requires an insurance document and a transport document.
Redway Tech Editorial Team – Procurement and finance perspective
Book dangerous-goods space early and ask the forwarder for cut-off dates, which can differ from general cargo. Under FOB, the vessel nomination and the cut-off are yours. Under EXW, agree who loads the truck and who signs for the pick-up.
Redway Tech Editorial Team – Logistics perspective
CIF cover at minimum (C) level is narrower than all-risks cover. Consider asking for broader cover at your cost, and check that the policy lets you, as buyer, claim directly from the insurer. Keep photos of the cargo at loading and at delivery.
Redway Tech Editorial Team – Risk and insurance perspective
Specifications are taken from Redway product pages as of October 2026. Where a figure isn’t published, this article says so. Confirm current specifications for your model with Redway before ordering. This article is general guidance, not a site-specific engineering assessment.
Related products
- 48V 600Ah 630Ah Forklift Lithium Battery
- 48V 560Ah 550Ah Forklift Lithium Battery
- 83V 80V 400Ah 420Ah Forklift Lithium Battery
- 48V 420Ah 400Ah Forklift Lithium Battery
- 24V 280Ah 300Ah Forklift Lithium Battery
Related topics
- Battery Import, Shipping & Warranty Support
- Battery Wholesale, Pricing & Logistics
- Forklift Battery OEM & Procurement
- Forklift Battery Cost, Financing & TCO
- Lithium Mining, Regulation & Transport
- Battery Certification, Compliance & Documentation
- Battery OEM Cost, Tooling & Project Management
- Forklift Battery Replacement & Conversion
- Forklift Brands, Models & Battery Fitment
- LiFePO4 Batteries OEM
Continue learning
Forklift Batteries
Related reading
