What is meant by 'Cost and Freight' in INCOTERMS?

'Cost and Freight' (often abbreviated as C&F or CNF) is an INCOTERM that signifies that the seller is responsible for paying the costs of shipping the goods to the destination port. This term indicates that while the seller covers the freight charges associated with transporting the goods, it is the buyer who assumes the risk once the goods are loaded onto the shipping vessel at the port of origin. The seller's obligation includes all costs related to getting the goods to the port of shipment and freight charges up to the destination port.

This term specifically delineates the distribution of responsibilities related to shipping and risk, which is crucial for international trade transactions. Understanding this division helps both parties in a transaction clearly identify their respective responsibilities and financial obligations.