# Cost, Insurance and Freight

*Last updated: 2026-06-26*

> CIF – Cost, Insurance and Freight – comes into play in export contracts that specify a named port of destination and require the seller to arrange minimum cargo insurance.

CIF – Cost, Insurance and Freight – comes into play in export contracts that specify a named port of destination and require the seller to arrange minimum cargo insurance. The seller concludes the contract of carriage, pays the ocean freight to the destination port, and procures insurance cover at minimum level for the buyer's account. Risk of loss or damage, however, transfers to the buyer as soon as the goods are loaded on board at the port of shipment – meaning the seller pays for insurance at the very point when it is the buyer who bears the risk. This disconnect between cost and risk is a common source of disputes, particularly for importers unfamiliar with the mechanics of CIF. The term applies exclusively to sea and inland waterway transport; for containerized shipments, CIP is the more appropriate choice, as risk transfers earlier and mandatory minimum coverage is higher. CIF is defined under the Incoterms rules published by the International Chamber of Commerce (ICC).

**Source:** [https://iccwbo.org/business-solutions/incoterms-rules/](https://iccwbo.org/business-solutions/incoterms-rules/)

## Quick Facts

| Property | Value |
|---|---|
| Term | Cost, Insurance and Freight |
| Language | EN |
| Word count | 164 |
| Last updated | 2026-06-26 |
| Source | https://iccwbo.org/business-solutions/incoterms-rules/ |

---

*Logistics Glossary — Freight Academy: [https://www.freight-academy.com/en/glossary/cost-insurance-and-freight](https://www.freight-academy.com/en/glossary/cost-insurance-and-freight)*

*Markdown mirror: [https://www.freight-academy.com/api/md/glossary/en/cost-insurance-and-freight](https://www.freight-academy.com/api/md/glossary/en/cost-insurance-and-freight)*

*JSON summary: [https://www.freight-academy.com/api/v1/glossary/cost-insurance-and-freight/llm-summary?lang=en](https://www.freight-academy.com/api/v1/glossary/cost-insurance-and-freight/llm-summary?lang=en)*