Cost and Freight (C and F)

Cost and Freight (C & F)

C & F stands for cost and freight. It is a legal term in international trade. When used in quoting prices, it includes the price of the goods together with all possible charges up to the destination excepting insurance. It means that the seller must pay the costs and freight necessary to bring the goods to a named port of destination and must also procure marine insurance against the buyer’s risk or loss to the goods during the carriage. It is the shipper/seller’s responsibility to get goods from their door to the port of destination.

Cost and Freight refer to a shipping contract which includes the cost of the goods and the freight, but not insurance. That means the seller pays for shipping, but not insurance. The buyer would be responsible for all insurance.  It is the buyer’s responsibility to cover insurance from the port of origin or port of shipment to the buyer’s door. For example, you’re a buyer in Japan and you decided to import goods from India. The seller agrees to carry the goods to a port in India and pays all fees related to loading the goods onto the vessel. The seller chooses the ship himself and covers the freight costs. Given that the shipper is responsible for transportation, the shipper also chooses the forwarder.