FOB Miami: Your Guide to Trading Through PortMiami

What FOB Means in International Trade

FOB (Free On Board) is an Incoterm that defines the point at which risk and cost transfer from seller to buyer. Under FOB Miami, the seller is responsible for all costs until the goods are loaded onto the vessel at the Port of Miami. Once on board, the buyer assumes freight, insurance, and destination charges.

This clear division makes FOB the most widely used term in US-Caribbean trade because it gives the buyer control over shipping costs while the seller handles inland logistics and export clearance.

Why Miami Is the Gateway to the Caribbean

PortMiami is the closest major US port to the Caribbean basin. Geographic proximity translates directly into lower freight rates and shorter transit times -- often 3 to 7 days to most island destinations. Miami also sits at the intersection of major air, rail, and highway networks, making it easy to consolidate goods from across the United States before export.

PortMiami Advantages

• Proximity -- 3-7 day sailing times to most Caribbean ports
• Infrastructure -- deep-water berths, modern container terminals, and on-dock rail
• Reefer terminals -- temperature-controlled facilities for perishable goods
• Free Trade Zone -- Foreign Trade Zone No. 281 allows deferred duties and re-export without US customs entry
• Carrier frequency -- weekly direct sailings to Jamaica, Haiti, Trinidad, Dominican Republic, and beyond

Cost Breakdown: FOB vs CIF

Under FOB Miami, the buyer's costs split into two categories. The seller covers: goods cost, inland transport to port, export customs clearance, and port loading charges. The buyer covers: ocean freight, marine insurance, destination port charges, import duties, and inland delivery.

Under CIF (Cost, Insurance, and Freight), the seller also covers ocean freight and insurance. CIF is simpler for the buyer but often more expensive because the seller marks up logistics. FOB gives experienced importers better cost control.

Common Incoterms for Caribbean Trade

• FOB -- most common; buyer controls freight
• CIF -- seller arranges freight and insurance; popular with less experienced buyers
• CFR -- like CIF but without insurance; buyer arranges own coverage
• EXW -- buyer handles everything from the seller's warehouse; rarely used in Caribbean trade

How Guimelie Trade Leverages Miami

Guimelie Trade operates from Miami and maintains relationships with freight forwarders, customs brokers, and carriers serving the Caribbean. We provide FOB Miami quotes with full transparency -- goods cost, port charges, and loading fees are itemized so buyers know exactly what they are paying for. Our 48-hour proforma turnaround means you can move fast when market conditions are right.