How to Read a Granite Export Quotation — What Every Line Means
You have asked an Indian granite supplier for a quotation. It arrives as a PDF or a WhatsApp message, and somewhere between FOB Mundra, BL charges, and THC at destination, you realise you are not entirely sure what you are agreeing to pay. This is one of the most common frustrations for UK monumental masons and French marbriers working with Indian stone for the first time — the quotation format is unfamiliar, the abbreviations are not explained, and it is genuinely unclear which costs are included and which will appear later. This guide decodes a standard granite export quotation line by line, so you know exactly what you are looking at — and what questions to ask before you sign anything.
Quick Answer
A granite export quotation from India is almost always quoted on an FOB basis — meaning the price covers the stone, packaging, inland transport to the Indian port, and loading onto the vessel. Everything from that point onwards — ocean freight, insurance, destination port charges, customs clearance — is your responsibility unless the quotation specifies otherwise. To compare two quotations fairly, always convert both to CIF destination port before comparing figures.
What FOB Actually Means — and Why It Is the Standard
FOB stands for Free On Board. It is the most common basis for Indian granite export quotations, and it is worth understanding precisely what the boundary is.
When a supplier quotes you FOB, their responsibility — and the price you are paying — covers the following:
The cost of the stone itself, at the agreed grade, finish, and dimensions. The cost of packing the slabs into the container — wooden crating, foam or rubber edge protection, wooden battens between layers. Inland transport from the quarry or factory to the Indian port of loading (Mundra in Gujarat, Chennai in Tamil Nadu, or Nhava Sheva near Mumbai are the most common for granite). And finally, the charges for loading the container onto the vessel at the departure port.
Once the container is on board the vessel — the supplier’s job is done under an FOB agreement. From that moment, the ocean freight, the marine insurance, and every charge at the destination port falls to you.
This is not a disadvantage. FOB is the standard because it gives you full control over your freight forwarder, your shipping line, and your insurance. Many experienced masons and marbriers prefer it precisely because they have established relationships with their own freight forwarders and can often source competitive freight rates independently.
CIF and CFR — When the Supplier Arranges the Freight
Two other Incoterms appear regularly in granite quotations, and both move some of the buyer’s responsibility back to the supplier.
CIF — Cost, Insurance and Freight
CIF means the supplier has included ocean freight and marine cargo insurance in the quoted price, to a named destination port — for example, CIF Felixstowe or CIF Le Havre. What you still pay: customs clearance at the destination port, any import duties, inland delivery from the port to your yard, and the destination terminal handling charges (THC — more on that below).
CIF is convenient, and for a first order where you do not yet have a freight forwarder relationship, it simplifies the process. The trade-off is that the supplier selects the shipping line and the insurance level. Some suppliers build a margin into the freight element. Neither is problematic as long as you know it is happening.
CFR or CNF — Cost and Freight, No Insurance
CFR (also written CNF, or C&F) means the supplier has arranged and paid for ocean freight to the destination port, but marine insurance is not included — that remains your responsibility. This is less common in practice but does appear. If you see CFR in a quotation, confirm insurance separately before assuming you are covered.
For a full reference on Incoterms and how they allocate risk and cost, the International Chamber of Commerce Incoterms 2020 guide is the authoritative source.
Origin Charges — What They Are and Whether They Are Already in the FOB Price
Origin charges are the port handling fees at the Indian departure port. They cover the cost of moving the container through the terminal before it is loaded onto the vessel.
In most well-structured granite quotations, origin charges are included within the FOB price. But not always. Some suppliers itemise them separately, and some — particularly on first quotations to new buyers — omit them entirely, which means they will appear as an additional charge once the container is at port.
The simplest way to handle this: ask the supplier directly. “Are origin charges included in this FOB price?” A clear supplier will give you a clear answer. If they hesitate or the answer is vague, that is useful information about how the rest of the transaction will be handled.
BL Charges — The Bill of Lading Fee
The Bill of Lading is the legal document of title for your cargo — it is what you present at the destination port to take possession of your container. The shipping line charges a fee to issue it. This is a standard, unavoidable charge typically in the range of USD 50 to USD 100, and it appears on almost every Indian granite shipment.
In some quotations it is listed as a separate line item. In others it is absorbed into the supplier’s charges. Either way, it is a real cost. If you see it itemised, that is a sign the supplier is being transparent about costs rather than hiding them elsewhere.
THC — Terminal Handling Charge at Destination
THC is the charge levied by the destination port terminal for moving your container from the vessel into the storage area, and then to the gate for collection. It is paid by the buyer and is entirely separate from the ocean freight.
THC rates vary by port. At UK ports such as Felixstowe or Southampton, THC for a 20-foot container typically ranges from £200 to £350. At French ports such as Le Havre or Marseille, equivalent charges apply in euros. These figures change periodically — confirm current rates with your freight forwarder before finalising your landed cost calculation.
THC is one of the costs most commonly missed by first-time importers. It does not appear in the supplier’s quotation because it is charged by the terminal directly to the consignee. Your freight forwarder can tell you the current THC for your intended destination port before you place an order.
How to Compare Two Quotations on a Like-for-Like Basis
This is the most practical section of this guide, because comparing an FOB quotation from one supplier with a CIF quotation from another is not a straightforward number comparison.
The correct method is to convert everything to a CIF destination port basis before comparing. Here is the process:
Take the FOB price. Add the estimated ocean freight from the Indian port to your destination port — your freight forwarder can give you a current rate for a 20-foot or 40-foot FCL. Add the estimated marine cargo insurance premium — typically 0.3% to 0.5% of the cargo value. The total is your estimated CIF equivalent for that FOB quotation. Now compare it to the CIF quotation from the other supplier.
This is the only comparison that is meaningful. An FOB price of USD 4,200 and a CIF price of USD 5,800 cannot be compared directly. Once you add freight and insurance to the FOB price, the real difference becomes visible. Sometimes the FOB supplier is cheaper overall. Sometimes the CIF supplier has built in a competitive freight rate that makes their total the better figure. You cannot know until you do the calculation.
For current freight rate benchmarks between Indian ports and UK and European ports, Freightos maintains a useful freight rate index as a reference point, though live rates should always be confirmed with your forwarder.
What a Well-Structured Quotation Must Contain
Beyond the Incoterm and freight terms, a quotation from a serious granite supplier should contain specific information that lets you evaluate it fully. If any of these elements are absent, ask for them before proceeding.
Stone Specification — In Full
The quotation must name the granite variety, the grade (premium or commercial), the finish (mirror polish is standard for memorial grade), the dimensions or size format, the thickness, and the total quantity. A quotation that says “Absolute Black granite, competitive price” tells you nothing. The specification must be itemised precisely — because this is what becomes the binding reference if a dispute arises later.
Unit Price and Total Price
Both must be present. Unit price per square metre (or per slab, or per piece) and the total value of the shipment. This allows you to check the arithmetic, and it determines the declared value on the customs documents.
Incoterm and Port of Loading
The Incoterm must be stated explicitly — FOB, CIF, CFR — and the port of loading must be named. FOB Mundra and FOB Chennai are different shipping points, and the origin charges and inland transport included in the FOB price differ accordingly. For a detailed explanation of how Indian port selection affects lead times and freight costs, the Directorate General of Foreign Trade publishes port-specific export data.
Estimated Lead Time
Production time from order confirmation to container loading, and estimated sailing time to your destination port. These are estimates, not guarantees — but a supplier who cannot give you a lead time estimate is a supplier who does not have a clear production process.
Validity Period
Granite prices are affected by raw material availability, fuel costs, and currency fluctuations. A quotation without a validity period is technically open-ended. Most Indian granite suppliers quote with a validity of 15 to 30 days. If the quotation you have received does not state a validity period, confirm it before assuming the price holds.
Frequently Asked Questions
Is FOB or CIF better for a first granite order from India?
Neither is universally better — it depends on whether you have an established freight forwarder. For a first order, CIF removes the complexity of arranging freight independently and gives you a clearer total cost upfront. For repeat orders, many buyers prefer FOB because they have forwarder relationships and can often source more competitive freight rates themselves. The more important factor is that the Incoterm is stated clearly in the quotation, so both sides understand the cost boundary.
What is the difference between THC and BL charges — are they the same thing?
No. THC (Terminal Handling Charge) is paid at the destination port terminal to handle the container on arrival — it is charged by the port or terminal operator, not the shipping line. BL charges (Bill of Lading fee) are paid at origin to the shipping line to issue the title document for your cargo. Both are real costs, both are standard, and both should be factored into your landed cost calculation. Your freight forwarder handles both in practice and will tell you the current figures for your specific port.
Why do some Indian granite quotations not include origin charges in the FOB price?
Some suppliers quote the ex-factory or ex-works price and label it FOB without including the actual port handling and inland freight to the vessel. This is either a misuse of the Incoterm or a deliberate omission. Under the correct FOB definition, origin charges to the port of loading are the supplier’s responsibility and should be included. If you receive a quotation where origin charges appear as a separate add-on to an FOB price, ask for clarification — and factor the full cost into your comparison before deciding.
How do I calculate the total landed cost of a granite shipment?
Start with the FOB price. Add ocean freight (confirmed with your forwarder for the specific route and container size). Add marine cargo insurance (typically 0.3% to 0.5% of cargo value). Add destination THC. Add customs clearance charges (your freight forwarder or customs broker will quote this). Add any import duties applicable in your market. Add inland delivery from port to your yard. The total is your landed cost — the true cost of the stone in your workshop. Always calculate this before comparing suppliers on price.
Reading a Quotation Is the First Step — Understanding the Process Behind It Is the Second
A quotation from StoneCrest International itemises every line clearly — stone specification, grade, finish, dimensions, FOB price, port of loading, lead time, and quotation validity. No charges appear after the fact that were not visible at quotation stage. If you want to understand what happens between the quotation and the container arriving at your port, the StoneCrest export process page covers all eight steps — from enquiry to post-arrival follow-up. If you have a quotation in front of you and want a second opinion on whether the terms and charges are standard, contact StoneCrest directly — we will tell you what the numbers mean and whether they represent fair market terms for your specification.