What is C&F?
Cost and Freight (C&F) is a widely used term in logistics that refers to a type of incoterm used in international trade. It is important for beginners in the field of logistics to understand the concept of C&F as it plays a crucial role in determining the responsibilities and costs associated with the transportation of goods.
C&F, also known as CFR (Cost and Freight), is an agreement between the buyer and the seller that outlines the responsibilities and costs up to the point of delivery of goods to the named port of destination. Under this incoterm, the seller is responsible for the costs and risks associated with delivering the goods to the port of shipment, including the cost of transportation, export clearance, and loading onto the vessel.
Once the goods are loaded onto the vessel, the responsibility and risk transfer to the buyer. The buyer is then responsible for the costs and risks associated with the transportation of goods from the port of shipment to the final destination, including the cost of insurance, unloading, and transportation from the port of destination.
It is important to note that C&F does not include the cost of insurance, which is the responsibility of the buyer. However, the seller is still responsible for arranging the necessary transportation and documentation required for the export of goods.
C&F is commonly used when the buyer wants to have more control over the transportation process and is willing to take on the risks and costs associated with it. It provides a clear division of responsibilities between the buyer and the seller, ensuring that both parties understand their obligations and liabilities.
In conclusion, Cost and Freight (C&F) is an incoterm used in international trade to define the responsibilities and costs associated with the transportation of goods. It outlines that the seller is responsible for the costs and risks up to the point of delivery to the named port of destination, while the buyer takes over from there. Understanding C&F is essential for beginners in logistics to effectively navigate the complexities of international trade and ensure smooth and efficient transportation of goods.