What does CIF stand for in shipping agreements?

CIF stands for "Cost, Insurance, and Freight." In shipping agreements, this term indicates that the seller is responsible for paying the costs of transporting goods to a designated port, including insurance coverage and freight charges. The seller covers expenses until the goods reach the port of destination, ensuring that they are transported safely and that the buyer has protection against loss or damage during transit.

This term is crucial in international trade as it clarifies the responsibilities and costs shared between the buyer and seller. Understanding CIF is important for parties involved in shipping agreements, as it impacts their financial and legal obligations during the shipping process. It ensures that buyers can have confidence in the acquisition of goods, knowing they are insured and the costs up to the delivery point are covered by the seller.

The other options do not accurately represent the traditional terminology used in shipping agreements, making them incorrect in this context.