06 advantages for exporter under CFR delivery terms

How is CFR terms benefited for a Seller under Inco terms 2020

CFR Advantages to Exporter (Seller)

Is CFR delivery terms helps sellers under contract of carriage?

The below information explains about the advantages of CFR for exporter in import export business. 

01. Under CFR rules in export import trade, the seller is liable to undertake the risks of movement of goods till the goods are loaded in to the Vessel.  So the exporter holds minimum risk under CFR delivery rules. This is an advantage for exporter under CFR delivery terms.

02. Another advantage for exporter under CFR terms of delivery is that the seller undertakes ocean freight arrangements (main carriage) under CFR terms, in turn the seller control over main carriage by nominating a shipping carrier as per his own decision and choice. 

03. In an import export trade, exporter under CFR terms need not worry about government rules and regulations for import process, import duties, and other import regulations in buyer’s country. This is a benefit for exporter under CFR delivery rules.

04.  One of the other advantages for exporter is that under CFR delivery rules, the seller is not responsible to undertake the risks and costs of moving goods from destination named port to final destination of buyer.

05.  Since exporter decides shipping carrier of main carriage under CFR, the exporter holds rights with shipping carrier for getting Export General Manifest (EGM) details and other shipping tracking information. This is another advantage for exporter when contract of carriage is on CFR basis.

 06. Another advantage for exporter against CFR delivery rules is that the unloading risk and cost under CFR terms of delivery is with the importer and the seller of goods is free from any loss or damage of goods when unloading at final destination of buyer.

The above information is about the merits for exporters when contracting CFR terms of delivery.

You may comment below your experience and share below the strength points for a seller when agreeing contract of carriage on CFR basis.

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