Cost and Freight
Cost and Freight (CFR) means that the seller must pay the costs and freight in order to transport the goods to the port of destination in question. The risk of the loss of or damage to the goods, as well as any additional costs as a result of events after the goods are delivered onboard the vessel, transfers from the seller to the buyer when the goods pass the ship’s railing in the shipping port. The term CFR obliges the seller to clear the goods. This term can only be used for transport by sea and inland shipping traffic.