In international trade, precise and standardized terms are essential to establish clear expectations and responsibilities between buyers and sellers.
Among these terms are the internationally recognized “Incoterms”, which define the obligations and distribution of costs throughout the course of a transaction.
Two often employed Incoterms: CFR (Cost and Freight) and DAP (Delivered at Place).
This article aims to shed light on the differences between CFR and DAP, allowing importers, exporters, and industry professionals to navigate their international trade agreements with greater confidence and precision.
By exploring the specific characteristics and implications of each Incoterm, this article will provide a comprehensive understanding of contrasting obligations, costs, and risks associated with CFR and DAP.