DEFINITION
CIF is for sea and inland waterway transport. The seller clears the goods for export, pays the freight to the named destination port and buys insurance for the buyer's benefit, with minimum cover unless the parties agree more.
The catch is that risk passes to the buyer much earlier than costs: as soon as the goods are on board the vessel at the port of shipment. If the cargo is damaged at sea, it is the buyer who claims on the insurance the seller bought.
CIF suits bulk and conventional sea cargo. For goods handed over in containers at a terminal, CIP is the better fit, since risk under CIF only passes once the goods are on board.
HOW KOLIBRA HELPS
Kolibra records the Incoterm on each side of the deal and adds the freight and insurance you pay to the landed cost per piece, so a CIF price is compared with your other offers on the same basis.