Cost and Freight (C & F)
When a seller quotes a price for goods that includes the cost of transportation to a specific point, they are using Cost and Freight (C & F) pricing. This pricing method is common in international trade, where the buyer is responsible for loss and damage during transport and also pays for the insurance of the shipment.
The C & F price quoted by the seller usually includes the cost of transport from the factory or warehouse to the port of export, as well as any customs duties and taxes that may be levied on the goods. It does not include the cost of transporting the goods from the port of arrival to their final destination.
The buyer is responsible for any losses or damages that occur during transport, as well as arranging and paying for the insurance of the shipment. If the goods are damaged or lost during transport, the buyer may be able to claim damages from the transporter or insurer.
C & F pricing is often used in cases where the buyer wants to ensure that they receive the goods at a specific destination, and is willing to pay for the additional cost and risk involved in getting them there. It can be a more expensive option than other pricing methods, such as Ex-Works (EXW) or Free on Board (FOB), but can be more convenient for the buyer.
When choosing a pricing method, it is important to consider the risks and costs involved in each option. C & F pricing can be a good choice for buyers who want to reduce their risk and ensure that goods are delivered to a specific destination.
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