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Incoterms Definitions CFR, CIF, CPT, CIP - Universal Shipping News

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More: http://www.universalcargo.com/Incoterms-Definitions-Part-2-CFR-CIF-CPT-CIP/ Universal Shipping News presents Incoterms Definitions: Group C – Main Carriage Paid. You need to know what incoterms mean? You’re in the right place. In previous videos we covered Incoterm groups E and F. This video defines all of the Incoterms in Group C. That means we’re covering CFR, CIF, CPT, and CIP. Terms from this group have one thing in common, they are all terms used when the seller can arrange to pay all the fees up to delivery at a foreign port. Now, what do these incoterms mean? 1. CFR: Cost and Freight, aka C&F, aka CNF CFR means that the seller covers all the costs of bringing goods from their origin to the port of destination, including carriage costs and clearing the goods for export, but not including the insurance. Even though the seller takes care of the actual loading and transportation of goods up to the port of destination, the buyer pays the insurance (and therefore assumes the risk) from the moment the goods are loaded onto the vessel on. This term is used exclusively for maritime and inland waterway trade. CIF: Cost Insurance and Freight CIF is identical to CFR, except the seller also covers insurance. With a CIF arrangement, the seller (not the buyer) assumes the risk (and therefore is responsible for purchasing insurance) for the goods during transit from origin to the port of destination. CIF also applies solely to maritime and inland waterway trade. However, CIF may not be appropriate where the goods are handed over to the carrier before they are loaded on the vessel – the usual container scenario. CPT: Carriage Paid To, aka DPC CPT indicates that the seller assumes most of the cost of transportation of the goods including export fees, carriage charges, and fees at the port of destination. Seller does not pay for insurance – that is the buyer’s obligation. The moment that the risk of loss or damage is transferred from seller to buyer is when the goods are loaded onto the first carrier vessel, despite the seller paying the carriage charges.[4] CPT can be used for all modes of transportation, including container or roll-on roll-off traffic. CIP: Carriage and Insurance Paid To CIP is much like CPT in that the seller assumes most of the costs of transportation including export fees, carriage charges, and fees at port of destination. For CIP arrangements, however, the seller is responsible for purchasing insurance for the goods during the carriage. While the seller is required to buy insurance for the carriage, the risk of loss or damage is transferred from seller to buyer when the goods are loaded onto the first carrier vessel. CIP can be used for all modes of transport but is most common for intermodal (i.e. container) shipping. That’s it for Incoterms Group C. In the next video we’ll cover Group D. For more about Incoterms and all your international shipping needs, go to UniversalCargo.com. Until next time, stay in ship shape.
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Text Comments (5)
FutureCPA 27 (1 month ago)
OMG this helps a lot. Thank you!! 😁
Universal Cargo (1 month ago)
We're glad this was so helpful for you!
pawan bhikoji (5 months ago)
Tq u
Azhar Zuberi (2 years ago)
Very useful video. At 0:59, CIF should be replaced by CFR.
Universal Cargo (2 years ago)
Thanks, Azhar!

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