CFR – Cost & Freight (…named port of destination): Cost and Freight means that the seller (exporter) delivers when the goods pass the ship’s rail in the port of shipment. The seller (exporter) must pay the costs and freight necessary to bring the goods to the named port of destination but the risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time of delivery, are transferred from the seller (exporter) to the buyer (importer).
The CFR term requires the seller (exporter) to clear the goods for export. If the parties do not intend to deliver the goods across the ship’s rail, the CPT term should be used.
This term can be used only for sea and inland waterway transport.