The exporter delivered the goods under CFR rule. In the journey from port of loading to port of discharge, the goods were damaged by an unexpected tsunami. According to Incoterms, who bears this risk?AImporterBInsurer CCarrierDExporter
Question
The exporter delivered the goods under CFR rule. In the journey from port of loading to port of discharge, the goods were damaged by an unexpected tsunami. According to Incoterms, who bears this risk?AImporterBInsurer CCarrierDExporter
Solution
According to Incoterms under the CFR (Cost and Freight) rule, the risk transfers from the exporter to the importer once the goods have been loaded onto the ship at the port of loading. Therefore, in this scenario, the importer (A) would bear the risk of the goods being damaged by an unexpected tsunami during the journey from the port of loading to the port of discharge.
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