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What does the term "Cost, Insurance, Freight (CIF)" require from the seller?

  1. To arrange for land transportation

  2. To provide insurance for the buyer

  3. To arrange for the carriage of goods by sea

  4. To cover all expenses related to shipping

The correct answer is: To arrange for the carriage of goods by sea

The term "Cost, Insurance, Freight (CIF)" specifically requires the seller to arrange for the carriage of goods by sea, which is essential in international shipping. Under CIF terms, the seller is obligated to cover the costs associated with transporting the goods to the designated port of destination, securing marine insurance to cover potential loss or damage during transit, and paying the freight charges necessary for the shipping of the cargo. This means that the seller must actively coordinate the logistics of transportation, ensuring that the goods are placed onto a ship and delivered to the appropriate destination. While insurance and freight costs are also necessary components of CIF, the key requirement highlighted here is the seller's responsibility for arranging sea transportation, which is intrinsic to the CIF arrangement. Other options might seem related but do not encapsulate the full extent of what CIF specifically entails. For instance, while the seller does need to provide insurance, it is not a standalone requirement without the context of shipping the goods. Similarly, covering all expenses related to shipping might imply land-based transportation or other additional costs that go beyond the confines of marine transport. Thus, option C accurately addresses the core duty imposed on the seller under CIF terms.