Definition
An Incoterms 2020 rule for sea transport where the seller pays the cost and freight to bring the goods to the named destination port, but risk transfers to the buyer once the goods are loaded on board at origin. The buyer bears the risk of loss or damage during the sea voyage despite the seller paying the freight. Insurance is not the seller's obligation under CFR.
Frequently asked questions
What is CFR (Cost and Freight)?
An Incoterms 2020 rule for sea transport where the seller pays the cost and freight to bring the goods to the named destination port, but risk transfers to the buyer once the goods are loaded on board at origin. The buyer bears the risk of loss or damage during the sea voyage despite the seller paying the freight. Insurance is not the seller's obligation under CFR.
Which glossary terms are related to CFR (Cost and Freight)?
CFR (Cost and Freight) is a documentation term in the South African import/export industry. Related terms in the same area include Air Waybill (AWB), ATA Carnet, Bill of Lading (BoL), Cargo Manifest, Certificate of Conformity — each has its own plain-English definition in the TradeCaravan glossary.