Incoterms 2020
CFR: Cost and Freight
Load the goods and pay ocean freight to the destination port. Insurance in transit, import clearance, unloading, and delivery.
CFR at a glance
- Applies to
- Sea and inland waterway only
- Risk transfers to buyer
- When the goods are on board the vessel at the origin port. Risk passes at origin even though the seller pays freight to destination.
- Main carriage paid by
- Seller
- Insurance
- No party is obliged to insure. The buyer bears the in-transit risk and should insure.
- Export clearance
- Seller
- Import clearance and duties
- Buyer
- Seller handles
- Load the goods and pay ocean freight to the destination port.
- Buyer handles
- Insurance in transit, import clearance, unloading, and delivery.
- Best for
- Buyers who want the seller to book freight but want to control insurance.
General guidance only, not legal advice. Your sales contract governs. Based on Incoterms 2020.
CFR questions
Know the term, then track what it costs
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