Common Mistakes New Seafood Importers Make (and How to Avoid Them)

Buying frozen seafood on CIF often leaves importers exposed when temperature damage happens. This practical guide explains when to use FOB, what insurance endorsements to require, how to be the certificate beneficiary, and how to verify coverage before booking so claims actually get paid.

If you’ve ever been told “claim denied” after a reefer container arrived warm, you’re not alone. In our experience, most denied claims trace back to two things. The wrong Incoterm for reefer cargo and insurance that quietly excludes temperature variation. Here’s a buyer-first playbook we use when shipping frozen fish from Indonesia that keeps risk where it belongs and gets claims paid.

The short answer: CIF vs FOB for frozen seafood

For reefer cargo, FOB is usually better. Here’s why.

FOB with buyer’s insurance gives you control. You select the insurer, the coverage, and you are the named assured. That means no surprises like “temperature variation excluded.”
CIF can work only if the insurance is proven strong. You must verify endorsements for temperature variation or reefer breakdown and ensure you are the beneficiary before the booking is made.
CFR for reefer is the most misunderstood. The seller pays freight but you carry the risk once the container is on board. If you do not already have an annual policy in place, you’re exposed.

Practical rule. We recommend FOB plus your own marine cargo policy for frozen fish. If a supplier insists on CIF, require and verify specific endorsements and your beneficiary status. More on that below.

Does CIF cover temperature damage in a reefer?

Usually not by default. Many CIF policies carry Institute Cargo Clauses (C). That is minimal cover and routinely excludes loss from temperature variation and delay. Even ICC(A) “all risks” often excludes temperature issues unless an endorsement is added.

What you actually need is one of the following, clearly endorsed on the certificate:

Temperature Variation Coverage or Reefer Breakdown Coverage. Covers loss due to mechanical or electrical breakdown of the reefer unit causing temperature deviation beyond setpoint.
Institute Frozen Food Clauses (or equivalent). Some insurers use a frozen-food specific wording that bundles temperature variation with strict conditions.

If the certificate only says ICC(A) with no temperature extension, assume you’re not covered for thawing or partial thaw. That is when you see the dreaded “cargo claim denied.”

What endorsements do I need for frozen fish cargo?

We advise importers to require the following when shipping frozen products like Grouper Fillet (IQF), Yellowfin Saku (Sushi Grade), or Frozen Shrimp (Black Tiger, Vannamei & Wild Caught):

ICC(A) or Institute Frozen Food Clauses with Temperature Variation or Reefer Breakdown. Specify setpoint and temperature tolerance in the policy or shipment file. Typical setpoints are -18 to -22°C for frozen fish. Tuna and sashimi specs can be tighter by agreement.
Delay buyback if available. Some markets allow a limited delay extension where temperature variation follows a covered breakdown plus documented delay. Not all insurers offer this, and deductibles are usually higher.
Warehouse-to-Warehouse. Cover should start at the seller’s facility and end at your designated cold store, including inland legs.
Claims payable at destination and named local survey agent. You want clarity on who to call when the seal breaks.
Valuation at 110% of invoice (CIF or CIP basis). This cushions ancillary costs during a claim.

Insurers have tightened perishable wordings over the last 6 months because of schedule disruptions and transshipment congestion. Expect higher deductibles on reefer breakdown endorsements and stricter documentation requirements for pre-trip inspection and remote temperature logs.

Who files the claim if my seafood arrives thawed under CIF?

In theory, CIF is convenient because the seller buys insurance for your benefit. In practice, two failure points appear:

The seller is the assured, and you are not clearly the beneficiary or loss payee. You can’t control the claim.
The policy lacks temperature endorsements, or the deductible exceeds the loss.

Under a properly arranged CIF, the buyer should be named as the certificate beneficiary or co-assured with loss payable to the buyer. Then the buyer files the claim directly with the insurer’s local agent, while the seller assists with documents. If your supplier can’t provide a certificate naming you, assume you’ll struggle to recover.

Can I use CFR for reefer shipments, or is that risky?

CFR is workable if you already carry an annual open cargo policy and are comfortable insuring your risk from the on-board point at origin. The seller pays the ocean freight, you handle insurance and risk. The risks under CFR for reefer are timing and documentation. Miss insuring the shipment before the vessel departs and you’re exposed.

For buyers without an annual policy, CFR on reefer cargo is risky. Use FOB instead so you control booking and insurance from the outset.

What should appear on a marine cargo insurance certificate for seafood?

Use this checklist to verify a CIF certificate before booking:

Assured. Your company name as assured, or at minimum as beneficiary/loss payee.
Coverage form. ICC(A) or Institute Frozen Food Clauses, plus Temperature Variation/Reefer Breakdown.
Voyage. Warehouse-to-Warehouse from the processing plant to your final cold store.
Setpoint. Temperature setpoint and tolerance referenced or attached in the shipment file.
Deductible. Reasonable for your product and margin structure.
Survey agents. Named contact at destination.
Valuation. 110% of invoice.
Exclusions. Delay and market loss are commonly excluded. Confirm any delay buyback if you need it.

Need a second set of eyes on a certificate before you wire the deposit? We’re happy to sanity check wording for shipments of products like Pinjalo Fillet (IQF) or Mahi Mahi Fillet. If you want quick feedback based on your route and product spec, Contact us on whatsapp.

How much does reefer cargo insurance cost per container?

Premiums vary by corridor, insurer, and product sensitivity. Ballpark ranges we’ve seen recently:

0.25% to 0.60% of insured value for ICC(A) with Temperature Variation/Reefer Breakdown on common Asia to North America or Europe lanes.
Add 0.05% to 0.20% for delay extensions where available.
Minimum premiums often apply. Think 150–300 USD per shipment for smaller consignments, even if the rate suggests less.

If your loss history is clean and you use carriers with RCM telemetry, you can often negotiate toward the lower end.

Sample PO wording you can use today

When a seller insists on CIF, put this in your purchase order:

“Seller to provide marine cargo insurance under ICC(A) or Institute Frozen Food Clauses with Temperature Variation/Reefer Breakdown coverage, Warehouse-to-Warehouse. Buyer to be named as Assured and Loss Payee. Valuation: 110% of invoice. Claims payable at destination with survey agent appointed locally. Certificate and full wording to be provided and approved by Buyer prior to booking.”

For FOB or CFR when you insure:

“Shipment temperature setpoint and tolerance per Buyer spec. Seller to provide PTI certificate, continuous datalogger in-carton, and container RCM data access if available. Non-compliance constitutes non-conformity.”

How to document temperature excursions so claims get paid

We’ve seen good claims fail on paperwork. Do these every time:

Before loading. Get the PTI certificate and photo of the controller setpoint. Note container number and time.
During transit. Ask the carrier for RCM access. Save weekly snapshots. We prefer daily.
At destination. If there’s any suspicion of warm cargo, don’t break the seal until the appointed surveyor arrives. Photograph seal, doors, controller screen, and pulp temperatures on first opened cartons.
Independent loggers. Place at least two calibrated data loggers inside cartons at doors and center. Download files immediately.
Keep a simple chain-of-custody. Times, signatures, and location stamps.

These steps often make the difference between a fast settlement and months of back-and-forth.

When our advice applies, and when it doesn’t

If you’re importing standard frozen items like Red Snapper Portion (WGGS / Fillet), Swordfish Steak (IQF), or Kingfish Fillet (Portion Cut / IQF) at -18 to -22°C setpoints, FOB with your policy is almost always best. For ultra-cold or super-frozen programs with specialized carriers, bespoke insurance and carrier contracts may change the equation. And if your company already runs a global open policy with tight reefer endorsements, CFR can be fine.

Our bottom line on CIF vs FOB for reefer seafood

Choose FOB with your own marine cargo policy whenever you can. You control coverage, claims, and surveyors.
If you must buy CIF, approve the exact policy wording and ensure you are the beneficiary before booking. No exceptions.
Do the documentation work. PTI, RCM, and in-carton loggers are non-negotiable if you want an insurer to say yes.

If you want to see how we set up shipments and specs for consistent arrivals, you can browse the range we export from Indonesia, from Grouper Bites (Portion Cut) to Yellowfin Steak. Start here. View our products.