CFR (Cost and Freight)
Definition: CFR, an abbreviation for Cost and Freight, refers to a trade term indicating that the seller is responsible for the cost and freight of delivering the goods to the named port of destination. While similar to the older term “C&F,” CFR specifically pertains to maritime transportation. The seller’s responsibility ends when the goods pass over the ship’s rail (i.e., when they are loaded onto the vessel). The buyer is responsible for insurance costs, while the seller covers transportation costs. The buyer arranges the insurance contract, and the seller arranges the transportation contract.