CFR (cost and freight)

CFR (cost and freight).

(… named port of destination)

“Cost and Freight” means that the seller delivers when the goods pass the ship’s rail in the port of shipment.

The seller must pay the costs and freight necessary to bring the goods to the named port of destination BUT the risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time of delivery, are transferred from the seller to the buyer.

The CFR term requires the seller to clear the goods for export.

This term can be used only for sea and inland waterway transport. If the parties do not intend to deliver the goods across the ship’s rail, the CPT term should be used.

The word “cost” only signifies the price for the goods themselves and is quite unnecessary. The important keyword is “freight”. The term is sometimes abbreviated to “C & F” or, “CNF”, where the “N” takes the place of “and”. The term is used with the name of the port of destination, e.g., “CNF Hamburg”. This INCOTERM can be classified in a group where the main carriage is paid, usually by the seller. It is appropriate for transport by sea and inland waterway.


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