CIF (Cost, Insurance and Freight)
An Incoterm where the seller pays the cost, insurance, and freight to bring goods to the buyer's destination port.
Under CIF, the seller covers the cost of goods, marine insurance, and ocean freight up to your destination port. Risk still transfers to the buyer once the goods are loaded at origin.
CIF (Cost, Insurance and Freight) is an Incoterm where the seller arranges and pays for shipping and insurance to the buyer’s named destination port. It is popular with buyers who prefer a single landed-to-port price and do not want to manage freight booking themselves.
A key nuance: although the seller pays for freight and insurance, the risk of loss or damage transfers to the buyer the moment the goods cross the ship’s rail at the origin port. The insurance the seller buys is usually minimum coverage, so many experienced importers arrange their own additional cover.
CIF only applies to sea and inland waterway transport. For container shipping by other modes, the equivalent term is CIP. Compare with FOB, where you arrange and pay for the main freight leg yourself.