What is the difference between "freight" and "carriage"?
What is the difference between "freight" and "carriage" as in such Incoterms like"CFR-Cost and Freight" and "CPT-Carriage Paid To"? Don't they mean the same thing, do they? Why are the two different words used to refer the same thing in the same set of terms? And what does "cost" mean in "Cost and Freight"? Why isn't there cost in "Carriage Paid To"?
Public Comments
- You are right. Freight and carriage are synonymous terms. In accounting terminology, 'freight' is used by Americans whereas British use the word 'carriage'. Cost and Freight is usually abbreviated as CNF. It means that the invoice amount consists of cost as well as freight. The payment of freight is made by the seller, hence included in the invoice. CPT is new to me. However, according to the information given, this indicates that the amount of freight has been paid to the transporter or carrier named in the shipping bill so that the buyer has not to pay any amount for freight on purchases. I hope it helps.
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