Freight Glossary
CIF (Cost, Insurance, and Freight) – Meaning & Examples
Incoterm where the seller pays freight and insurance to the destination port.
- Abbreviation
- CIF
- Full term
- Cost, Insurance, and Freight
- Related terms
- CIF, cost insurance freight, CIF shipping, CIF terms
Cost, Insurance, and Freight (CIF) is an Incoterm where the seller pays for transport and insurance to the named destination port. However, risk transfers to the buyer once goods are loaded on the vessel at origin (same as FOB). The seller must provide minimum insurance coverage. CIF is commonly used for commodity trading and is only for sea/waterway transport. Buyers should note that while they receive goods "delivered," risk transfers at origin.
Cost, Insurance, and Freight examples
- CIF Rotterdam means the seller pays freight and insurance to Rotterdam, but risk transfers when loaded in origin port.
How CIF is used in freight operations
CIF appears in quotations, bookings, shipping documents, and tracking updates. Confirm how it applies to your shipment with your carrier, forwarder, or customs representative, because practice can differ by country and contract.
More in this directory
Frequently asked questions
What is CIF?
Incoterm where the seller pays freight and insurance to the destination port.
What does CIF stand for?
CIF stands for Cost, Insurance, and Freight.
What is an example of CIF?
CIF Rotterdam means the seller pays freight and insurance to Rotterdam, but risk transfers when loaded in origin port.