CNF Logistics Abbreviation

Cost and Freight

Cost and Freight (CNF) is a trade term used in the logistics and shipping industry to indicate that the seller is responsible for the costs and freight necessary to bring the goods to the port of destination. The risk of loss or damage to the goods, as well as any additional costs due to events occurring after the time of delivery, are transferred from the seller to the buyer when the goods pass the ship's rail in the port of shipment.

This term is often used in international trade contracts and is one of the Incoterms, a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC). It is crucial for both buyers and sellers to understand the implications of using CNF, as it affects the cost, risk, and responsibility during the transportation of goods. Proper use of CNF can prevent disputes and ensure smooth transactions between trading partners.