Difference between DPU and CFR, based on Inco terms 2020

CFR and DPU under Inco terms 2020

Delivered at Place Unloaded to a named place DPU and  Cost and Freight  at a 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 DPU 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 DPU rule may be used for movement of goods by Air, Sea or Land.

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

Under DPU 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.

High risks are undertaken by the seller under DPU terms which includes the responsibility of costs and risks to unload the goods at buyer’s named place.  However, under CFR, the seller’s risk transfer to buyer when the goods are loaded to the Carrier, although the seller bears the costs to named location.

Under DPU, 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 but costs up to the named destination contracted mutually between buyer and seller.

Another difference between CFR and DPU is that the unloading of goods at destination named place is under the risk and cost of seller under DPU delivery rules. But the buyer holds the responsibility to unload goods at named place under CFR terms at his own risks and costs. 

We have written about CFR and DPU separately in this website, you may click below to read:

CFR  Cost and Freight

DPU  Delivered at Place Unloaded

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