Watch: CFR Incoterms Explained
CFR means Cost and Freight. Under CFR, the seller clears the goods for export, loads them aboard the vessel and pays for transportation to the named destination port.
Video Transcript
“What does CFR mean in international shipping?
This 30-second guide explains Cost and Freight under Incoterms® 2020, including the seller’s transportation obligations and the point where cargo risk transfers to the buyer.
Under CFR, the seller clears the goods for export, loads them aboard the vessel and pays for ocean freight to the named destination port.
However, risk transfers to the buyer once the goods are aboard the vessel at the origin port—not when they reach the destination.
The buyer handles import clearance, pays applicable duties and taxes, and covers unloading costs not included in the seller’s carriage contract.
Unlike CIF, CFR does not require the seller to obtain cargo insurance.
CFR applies only to sea and inland waterway transport.
Always identify the named destination port and agreed port of shipment in the sales contract.”
