CFR – Cost and Freight

CFR Cost and Freight: The Journey’s Expense

Under CFR cost and freight, the seller arranges and pays for transport, but the risk transfers to the buyer as soon as the goods cross the ship’s rail at the port of origin. Imagine you’re on a roller coaster, the thrill of the ride is yours, but the operator controls the speed and direction. This is CFR. Present since the first Incoterms in 1936, CFR is a tale of adventure where the seller sets the course, but the buyer rides the waves.

Seller’s Obligations:

Deliver the goods on board the vessel at the port of shipment.

Pay for the cost of transport to the named port of destination.

Clear the goods for export.

Buyer’s Obligations:

Clear the goods for import, paying any customs duties.

Bear all risks of loss or damage from the port of shipment.