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What is Cost Insurance Freight (CIF)?
CIF is one of the 11 International Commercial Terms (Incoterms) used in trade, where the seller is required to:
1. Arrange and pay for the insurance of goods in transit at 110% of the declared value.
2. Arrange and pay for transportation costs from the factory to the final port of import.
🚨 Point of Risk Transfer!
When the goods are loaded onto the main ship in the port of export.
When should you choose CIF?
CIF is most commonly used for bulk cargo, oil, and oversized or overweight shipments .
Cost allocation. Who pays for what under CIF?
The only difference is insurance!
Under CIF , the seller is legally obligated to buy insurance for the goods at 110% of their value.
Under CFR , there is no legal obligation to buy insurance but the buyer is welcome to do so if he wants .
Proud Co-Founder and CEO of Bookairfreight. Shortly after starting to work in the world of logistics, I was astonished at how difficult and time consuming it was for businesses to get their hands on a simple air freight quote. I saw this as an opportunity to really make a difference in people’s lives, and felt like I had to do something. It was the spark that lit the fire of Bookairfreight’s creation.
