Cost and Freight (CFR)
Definition: What is CFR?
CFR, or “Cost and Freight,” is another Incoterm used specifically for sea and inland waterway transport. Under CFR, the seller arranges and pays for transport of the goods to the destination port. However, the risk transfers to the buyer once the goods are loaded onto the ship.
Seller’s responsibilities under CFR:
- Deliver the goods on board the ship
- Pay for the main transport up to the destination port
- Provide shipping documents and handle export clearance
- Package goods appropriately for ocean transport and export requirements
Buyer’s responsibilities under CFR:
- Assume risk from the moment the goods are on board
- Arrange insurance (not covered by seller)
- Handle import customs clearance and final delivery
When to use CFR
CFR works well when the seller has better access to sea freight services but the buyer is prepared to handle the cargo from arrival at port. It’s commonly used for bulk or containerized shipments where the seller has direct access to the vessel for loading. For containerized goods, CPT (Carriage Paid To) should be used instead, as CFR is not appropriate when cargo is delivered to terminals before loading.
How time:matters supports CFR shipments
With time:matters, sellers benefit from seamless coordination up to port arrival — with fast documentation handling and reliable carrier management. And if buyers want to extend visibility and speed beyond the port, we offer tailored onward solutions to stay in control even after risk shifts.