If you are taking your first steps in the world of imports or exports, you have surely already come across acronyms such as TRM, FOB, and CIF. And yes, at first they may seem confusing, but understanding them is essential to know how much it really costs to move your merchandise and how to avoid surprises along the way.
What is the TRM?
The TRM (Representative Market Rate) is the official value of the dollar in Colombia. In other words, it tells you how many pesos you need to buy one dollar on a given day. This value changes every day according to supply and demand in the exchange market. That is why, if you do international business, you must check the TRM before closing a negotiation.
For example, if the TRM is at COP 4,200, a purchase of USD 10,000 would be equivalent to COP 42 million Colombian pesos. But if it rises to COP 4,400, the same deal would cost you COP 44 million. That difference can directly impact your profitability.
Fenix advice: before importing or paying an invoice in dollars, ask your Fenix Global Cargo advisor for an updated cost projection with the day’s TRM. This way you can plan your cash flow better and protect your profit margin. In this article we explain each one in a simple way, with real examples and practical advice.
FOB Value: the price up to the port
The FOB value (Free On Board) represents the price of the goods placed on board the ship at the port of origin, not including international transportation or insurance. This means that the seller delivers the product up to the port, but from that point on all costs and risks are assumed by the buyer.
Example:
You purchase machinery from China for USD 20,000 under FOB conditions. From the moment the cargo is loaded onto the ship, you pay the ocean freight, insurance, and destination procedures.
Fenix tip: if you buy under FOB terms, make sure you have a reliable freight forwarder. At Fenix Global Cargo we manage your freight, insurance, and customs procedures, so that the cargo arrives safely, on time, and without extra costs.
CIF Value: the price up to your destination port
The CIF value (Cost, Insurance and Freight) includes the cost of the goods, international transportation, and insurance up to the destination port.
In this case, the seller assumes more responsibilities: they pay the freight and contract basic insurance for the cargo.
The buyer only assumes costs once the goods arrive at their port.
Example:
The same machinery shipment, under CIF conditions, could cost you USD 22,000. That amount already includes the freight and insurance.
Fenix tip: if you import under CIF, check what type of insurance your supplier includes. In many cases, the coverage is limited. With Fenix Global Cargo you can expand your insurance, monitor your cargo in real time, and have full customs support.
Concept | What it represents | What it includes | Who assumes most costs |
TRM | Dollar value in Colombia | Not applicable | Not applicable |
FOB | Price of goods at port of origin | Product + loading onto the ship | Buyer |
CIF | Total price up to destination port | Product + freight + insurance | Seller |
These three variables are connected to each other:
- The TRM directly influences the final value in Colombian pesos.
- The FOB defines how much you pay at origin.
- The CIF gives you the total cost up to the destination.
Fenix tip: combining these three elements allows you to understand the real cost of your import or export. At Fenix Global Cargo we help you analyze every detail, so you can make decisions with clarity and avoid overpaying.
Conclusion: understanding your costs means gaining control
Mastering these concepts is not just theory: it is the key to negotiating better, protecting your investment, and optimizing your shipments.
Whether you work with FOB or CIF, and regardless of how the TRM fluctuates, having a reliable logistics team can make the difference between a successful shipment and a headache.
Sources
Portafolio – “Estados Unidos anunciaría este viernes que le quita los aranceles a las importaciones de café.” https://www.portafolio.co/negocios/comercio/estados-unidos-anunciaria-este-viernes-que-le-quita-los-aranceles-a-las-importaciones-de-cafe-483134 Portafolio.co
Reuters – “US to remove tariffs on some products from Ecuador, Argentina, Guatemala and El Salvador.” https://www.reuters.com/world/us/us-remove-tariffs-some-products-ecuador-argentina-guatemala-el-salvador-2025-11-13/ Reuters+1
El País (English Edition) – “Trump to reduce tariffs on bananas, coffee and other food items to try to regain the initiative in cost-of-living crisis.” https://english.elpais.com/economy-and-business/2025-11-14/trump-to-reduce-tariffs-on-bananas-coffee-and-other-food-items-to-try-to-regain-the-initiative-in-cost-of-living-crisis.html EL PAÍS English
Business Insider – “Treasury Secretary says lowering coffee and banana prices is a priority.” https://www.businessinsider.com/trump-treasury-secretary-coffee-prices-lower-2025-11? Business Insider
Perfect Daily Grind – “New US trade deals could exempt Latin American coffee from tariffs.” https://perfectdailygrind.com/2025/11/coffee-news-recap-14-november-2025/
ABC News – “White House announces South American trade deals to try to lower some food prices.” https://abcnews.go.com/Politics/white-house-announces-south-american-trade-deals-lower/story?id=127507073 ABC News
Global Coffee Report – “US coffee tariff cuts coming?” https://www.gcrmag.com/us-coffee-tariff-cuts-coming/ GCR Magazine
