CIF - Cost, Insurance and Freight - What is the meaning of CIF shipping term? Using the Incoterms rule CIF, the seller covers the cost of insurance AND freight to the named port of destination or place.
The risk for damage or loss is transferred as soon as the goods are loaded onboard the vessel. The seller is required to purchase minimum insurance cover complying with the Institute Cargo Clauses (C) in the buyer's name.
Note: The use of this Incoterms rule is restricted to goods transported by sea or inland waterway.
With all incoterms it is important to understand the resposibilities and obligations of both the buyer and seller. There are eleven incoterms covering international shipments, are you aware of all the different options? If you need shipment support, please reach out to the team!
FREE DOWNLOAD: You can download our free Incoterms 2020 chart which provides simple explanations of all eleven incoterms here