CFR (Cost and Freight)

Cost and Freight (CFR) is an international trading term used in procurement that requires the seller to arrange for the carriage of goods by sea to a port of destination, and provide the buyer with the documents necessary to obtain the goods from the carrier. The seller must also pay the costs of freight required to bring the goods to the named port of destination. CFR implies that the risk of loss or damage to the goods transfers from seller to buyer once the goods have been delivered on board the vessel at the port of origin.