CIF

CIF (Cost, Insurance and Freight) is one of the maritime-only Incoterms. Under CIF, the seller arranges and pays for: the cost of the goods, ocean freight to the destination port, and marine cargo insurance covering the buyer. However, risk transfers to the buyer when goods cross the ship's rail at the load port — not at destination.

This split between cost responsibility (extends to destination) and risk transfer (at origin) catches many traders out. If goods are lost at sea, the buyer claims on the insurance policy the seller arranged. CIF is one of the most common Incoterms in container trade.