International shipments are way too complex than domestic shipments as there are many steps involved in the shipping process. That’s where the acronym CNF comes in.
Meaning of CNF in Shipping
CNF stands for Cost and Freight. It is the most widely used shipping term in International shipments. It is basically a shipping agreement between the buyer and seller. The seller pays to deliver the goods to the port closest to the buyer, after which the buyer is responsible for all other shipping charges, including insurance from the port to the final destination.
CNF is also known as CFR and C&F.
Importance of CNF in Shipping
With the growth of worldwide trade, there is a need to standardize international shipping. Understanding the various shipping choices allows the business owner and seller to improve the efficiency and flexibility of their supply chain.
CNF and other international shipping terms assist shippers and buyers in calculating and managing freight costs efficiently.
Other terms related to CNF
FOB stands for Free on Board/Freight on Board. Here the seller bears the cost of delivering items to the nearest port, but then the buyer is responsible for the shipping and all the other charges.
CIF stands for Cost, Insurance and Freight. Here the seller is responsible for all costs, including freight and insurance, associated with transporting the items to the final destination. Once the products are carried on the ship, the risk is moved to the customer.
What is the difference between CNF and CIF?
In CIF, the cost includes sea freight and insurance to deliver the items to the buyer’s closest port. The buyer then has to take responsibility for the package from that point forward. CNF is similar to CIF, except insurance is not included.