Trade & Incoterms
CFR (Cost and Freight)
An Incoterm where the seller pays costs and freight to bring goods to the named port of destination. Risk transfers when goods are on board at the port of shipment. Insurance is the buyer responsibility unless agreed otherwise.
In depth
CFR is like CIF without the insurance obligation. The seller pays freight to the destination port, but the buyer bears risk from the port of loading and should insure the voyage. It is common in commodities where buyers self-insure or buy cover separately.
Key points
- Seller pays freight only: not insurance
- Risk transfers on board at origin port
- Buyer should arrange cargo insurance from shipment start
- Pair with a clear specification of the destination port