Who pays for lss charges?

In the realm of international trade, understanding the various Incoterms is crucial for smooth transactions. Among these, the C&F and CIF terms are particularly important.

Under the C&F, or Cost and Freight, arrangement, the seller is responsible for delivering the goods to a designated port of shipment and paying the costs associated with transportation up until that point.

Many shipping companies have a policy of defaulting to the shipping port prepaid for this fee, meaning that the shipper is expected to pay the LSS fee in advance at the port of shipment. This is done to streamline the process and avoid any delays or confusion during the shipment.

Additionally, the seller is also liable for purchasing insurance coverage for the goods, although the insurance itself is technically not included in the C&F term.

Meanwhile, in the CIF, or Cost, Insurance, and Freight, scenario, the seller's responsibilities extend further. Not only do they cover the transportation costs and arrange for insurance, but they also assume the risk of loss or damage to the goods during transit.