CFR — Cost and Freight
Seller pays the sea freight to the destination port, but risk passes once goods are on board at origin.
CFRCost and FreightSea freight only
Where risk transfers
When the goods are on board the vessel at the port of shipment — even though the seller pays freight to the destination port.
Mode: sea and inland waterway only
Who pays what
| Export customs | Seller |
| Origin carriage | Seller |
| Main freight | Seller |
| Insurance | Either (optional) |
| Import customs | Buyer |
| Duties & taxes | Buyer |
| Delivery to place | Buyer |
Obligations
Seller
- •Clear for export and pay the freight to the destination port
- •Deliver on board at origin
Buyer
- •Carry the risk from the origin port despite not paying freight
- •Insure the voyage if wanted
- •Clear for import and pay duties
Watch out
The classic split: cost to destination, risk from origin. Buyer should arrange its own marine insurance.
More terms
Frequently asked questions
What does CFR mean in Incoterms 2020?
CFR stands for Cost and Freight. Seller pays the sea freight to the destination port, but risk passes once goods are on board at origin. Risk transfers when the goods are on board the vessel at the port of shipment — even though the seller pays freight to the destination port.
Who pays for the main freight under CFR?
The seller pays the main carriage under CFR.