Cost and Freight

From Open Risk Manual

Definition

Cost and Freight. It is a shipping term included in a contract of sale. It means that the vendor agrees to take full responsibility for delivering the products to the port of loading, clear the products for export, and arrange and pay for the transportation of the products to the named port of destination, such costs being included in the price of the products.

All risks of loss of or damage to the products,and any additional costs due to events occurring after the time the products have been delivered on board the vessel, is transferred from the vendor to the buyer when the products pass the vessel's rail at the port of loading. It is up to the buyer to arrange marine insurance for the sea voyage and transportation from the port of destination.

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