CIF Incoterms - 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 is transferred as soon as the goods are loaded on board the vessel i.e. are loaded onto the ship. The seller is required to purchase minimum insurance coverage complying with the Institute Cargo Clauses (C) in the buyer's name in the case of damage or loss.
Note: The use of the CIF Incoterm rule is restricted to goods transported by sea or inland waterway.
With all incoterms, it is important to understand the responsibilities 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
Click below for more information on shipping terms:
FCA (Free Carrier)
CPT (Carriage Paid To)
CIP (Carriage and Insurance Paid To)
DAP (Delivered at Place)
DPU (Delivered at Place Unloaded)
DDP (Delivered Duty Paid)
FAS (Free Alongside Ship)
FOB (Free On Board)
CFR (Cost And Freight)
CIF (Cost, Insurance And Freight)