Under CFR, the lighterage charge (if any) is on.....'s accountAcarrierBinsurance companyCsellerDbuyer
Question
Under CFR, the lighterage charge (if any) is on.....'s account
- A. carrier
- B. insurance company
- C. seller
- D. buyer
Solution
The lighterage charge refers to the cost incurred for transferring cargo between a vessel and the shore, typically in situations where the vessel can't dock at the port due to depth limitations. Under the terms of CFR (Cost and Freight), which is an international shipping agreement, the seller is responsible for the cost of transporting the goods to the port of destination, but the risk transfers to the buyer once the goods are placed on board the vessel.
Therefore, the lighterage charge would generally be considered part of the total freight cost, which the seller is responsible for. However, once the goods are on board, the risk and any additional charges such as lighterage would typically fall on the buyer.
In conclusion, the correct answer to the question "Under CFR, the lighterage charge (if any) is on.....'s account" would be:
Final Answer
D - Buyer
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