what is cost insurance freight ?

Question

marketing , definition , academics

Answer 1

CIF (Cost, Insurance and Freight) (...Named Place of Destination):
A Term of Sale where the seller has the same obligations as under the CFR but also has to procure marine insurance against the buyer's risk of loss or damage to the goods during the carriage. The seller contracts for insurance and pays the insurance premium. The CIF term requires the seller to clear the goods for export.

CFR or C&F (Cost and Freight) (...Named Port of Destination):
A Term of Sale where the seller pays the costs and freight necessary to bring the goods to the named port of destination, Terms of Sale but the risk of loss of or damage to the goods, as (continued) well as any additional costs due to events occurring after the time the goods have been delivered on board the vessel, is transferred from the seller to the buyer when the goods pass the ship's rail in the port of shipment. The CFR term requires the seller to clear the goods for export.

Answer 2

CIF describes the situation when shipping goods in which the SELLER is charging the BUYER for the cost of the goods shipped, the insurance cost covering transport and the freight cost. Title and risk pass to buyer when delivered on board the ship by seller who pays transportation and insurance cost to destination port. Used for sea or inland waterway transportation.

There are many other INCOTERMS - a good list can be found at http://www.ltdmgmt.com/incoterms.htm.