DAP and CFR under Inco terms 2020

CFR and DAP rules  under contract of carriage

Delivered at Place to a named place (DAP)  and  Cost  and Freight  at named place CFR are the two of eleven delivery rules for movement of goods under Incoterms 2020.

Let us discuss here the difference between both DAP and CFR delivery terms under Inco terms

First of all, CFR rule is meant for movement of goods on waterways, as it is known as Marine restricted mode of transport whereas DAP rule may be used for movement of goods by Air, Sea or Land.

Secondly, the named place under DAP is in buyer’s side whereas under CFR, the named destination may or may not be at buyer’s country.

Under DAP rules of delivery under Inco terms; the seller is responsible to arrange on carriage wherein CFR terms of delivery, the on carriage is under the risk and cost of Buyer.

Compared to CFR terms, more risk is undertaken by the seller under DAP terms. However, under CFR, the seller’s risk transfer to buyer when the goods are loaded to the Carrier in seller’s side, although the seller bears the costs to named location at buyer’s side.

Under DAP, the risks and costs moves equally till the end of movement of goods at buyer’s place where under CFR delivery rules; the seller discharges his risks when loading goods to the carrier at seller’s side  but costs up to the named destination contracted mutually between buyer and seller.

You may read about CFR and DAP separately in this website, you may click below to read:

CFR  Cost and Freight

DAP  Delivered at Place

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