Cost, Insurance and Freight is an Incoterms 2020 rule for sea and inland waterway transport under which the seller pays freight to the named port of destination and arranges minimum marine insurance, while risk transfers to the buyer when goods are loaded at the port of shipment.
In trade practice
Buyers using Cost, Insurance and Freight pricing should note that the insurance arranged by the seller covers only the minimum Incoterms default, which may be insufficient for frozen or high-value loads. Logistics teams must confirm that reefer plug availability and port handling costs at the destination port are not hidden in the freight quote. A common mistake is treating a CIF price as landed cost, overlooking destination customs duties, port charges and inland delivery.
In a specification
A contract or purchase order should state the named port of destination explicitly alongside the rule, for example Cost, Insurance and Freight named port, Incoterms 2020, to avoid ambiguity over which port the freight obligation ends at.