CFR Incoterm

CFR - Cost & Freight

The exporter arranges and pays for the export of the goods, including freight rates. The importer takes over the goods at the port of destination and bears the costs incurred from then on. The risk is transferred from the exporter to the importer as soon as the goods are on board the vessel.

The Incoterms CFR and CIF are largely identical. The only difference concerns insurance, because with CFR neither party is legally obliged to take out insurance.