CIF (Cost, Insurance, Freight)

A shipping term where the seller pays for cost, insurance, and freight to the destination port.

Why It Matters

CIF can simplify logistics for buyers, but you still need to understand what insurance and freight are actually included.

Practical Example

A supplier quotes CIF Hamburg, meaning the price includes cost, insurance, and freight to the destination port, but not necessarily local clearance costs.

Keep Building Your Sourcing Vocabulary

Learn the trade terms that matter before you negotiate quotes, place deposits, and compare shipping options.