CFRIncoterms 2020
Cost and Freight
Seller pays freight to the named destination port; risk transfers on board at origin.
CFR means the seller contracts and pays for carriage to the named destination port. Risk transfers when the goods are on board the vessel at the origin port.
Like FOB, CFR is sea-only. For containerised or multimodal shipments, use CPT.
CFR includes no insurance; if the buyer wants the seller to provide insurance, use CIF.
Who is responsible for what
- Cost
- Seller pays freight to the destination port.
- Risk
- Transfers at the origin port when goods are on board.
- Insurance
- Not included — use CIF for insurance.
- Duties
- Seller for export, buyer for import.
When to use
Sea freight where the seller arranges carriage but not insurance.
Transport modes
sea only
FAQ
- What is the difference between CFR and CIF?
- CIF includes insurance; CFR does not. Both are sea-only terms.
Create a CFR invoice
Start the wizard with CFR pre-selected. Takes about a minute.
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