Kuttum Coffee largely uses Free on Board basis to calculate delivery costs but in some instances, we also use Cost in Freight
Free On Board - FOB
Free on board (FOB) is a trade term that indicates whether the seller or the buyer has liability for goods that are damaged or destroyed during shipment between the two parties. "FOB shipping point" (or origin) means that the buyer is at risk while the goods are shipped, and "FOB destination" states that the seller retains the risk of loss until the goods reach the buyer.
Cost and Freight - CFR
Cost and freight (CFR) is a legal term used in international trade. In a contract specifying that a sale is made CFR, the seller is required to arrange for the carriage of goods by sea to a port of destination and provide the buyer with the documents necessary to obtain the goods from the carrier. Under CFR, the seller does not have to procure marine insurance against the risk of loss or damage to the goods during transit.