Cost and freight (CFR)

Cost and Freight (CFR) is a shipping agreement where the seller is responsible for covering the costs of transporting goods to a specified port. The seller handles expenses such as freight charges and delivery to the port of destination. However, once the goods arrive at the destination port, the risk of loss or damage transfers to the buyer. The buyer is also responsible for customs, duties, and insurance after the goods reach the port. CFR clarifies the seller’s obligation to deliver goods on board and cover transportation costs up to the destination port, while the buyer assumes responsibility afterward.