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Incoterms CIF is short for "Cost, Insurance and Freight." Under CIF Incoterms, the seller delivers goods onboard the vessel at the
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Finally, add the FOB price, insurance cost, and freight charges to get the CIF price: CIF Price = FOB Price + Insurance
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Key components of CIF include: Cost: Refers to the total cost of goods being sold. This includes the base price of the products and
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This paper presents the 2024 version of the OECD International Transport and Insurance Cost of Merchandise Trade (ITIC)
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Case Study: A Chinese electronics manufacturer uses CIF for European clients to streamline operations.
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The CIF price is useful, but it should never be treated as the full cost story. It combines product value, freight, and insurance, yet
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Freight – The seller arranges and pays for transportation to the agreed-upon destination port, but responsibility for
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In this example, the CIF price includes the cost of goods, freight charges, and insurance costs. The total landed cost
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CIF Incoterms: Incoterm CIF Cost, Insurance and Freight - Using the Incoterm rule CIF, the seller covers the cost of insurance AND
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Many sellers offer low CIF prices but use slow vessels and charge "destination handling fees" that can double your cost.
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