What does Cost, Insurance and Freight (CIF) mean?

CIF is the price-inclusive option: the seller pays freight to the destination port and provides basic cargo insurance for the voyage. Prices are typically quoted to a specific port - "CIF Rotterdam" or "CIF Antwerp" - and you'll see it frequently on commodity-grade offer sheets.

Risk still transfers at the port of loading, as with CFR. But unlike CFR, you're at least covered - the seller's insurance obligation means any damage or loss during the voyage is insured, even though you're technically bearing the risk from the moment it's loaded.

One caveat: CIF only requires minimum insurance cover under Institute Cargo Clauses (C), the least comprehensive option. For high-value specialty lots, that may not be enough. CIP - which mandates Clauses (A) cover - is the better-protected equivalent for modern containerised shipments.