Incoterms® 2020 — Category C

CFR — Cost and Freight (Incoterms 2020)

CFR — Cost and Freight (Incoterms® 2020). Risk transfers when goods are on board the vessel at the port of shipment (same as fob).. Freight included. Insurance NOT included.Generate compliant CFR documents in 60 seconds. Free up to 3/month.

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infoCFR at a Glance

Responsibilities

Risk Transfer: When goods are on board the vessel at the port of shipment (same as FOB).
Cost Responsibility: Seller bears costs up to destination port (freight included). Buyer bears import clearance, duties, inland transport.
Transport Mode: Sea/Inland Waterway ONLY
Freight Included: Yes — seller arranges & pays main carriage
Insurance Included: No — buyer arranges if desired
Category: Main Carriage Paid (C)

When to Use CFR

When seller wants to pay freight but not assume risk in transit
For non-containerized sea freight
When buyer wants control over import side but not ocean freight

When NOT to Use CFR

For containerized cargo (use CIP or CPT)
When seller wants to control entire logistics (use D-group)

articleCFR Explained — Practical Guide

What CFR Means in Plain Language

CFR (Cost and Freight (Incoterms® 2020)) is an Incoterms® 2020 term in Category C — main carriage paid. Under CFR, the seller when goods are on board the vessel at the port of shipment (same as fob).and pays for main carriage to the named destination.

Step-by-Step: Who Does What

Seller: Makes goods available at the named port/place.
Export clearance: Seller arranges & pays for export clearance.
Main carriage: Seller contracts & pays carrier to named destination.
Risk transfers: When goods are on board the vessel at the port of shipment (same as FOB).. After this point, loss/damage is buyer's risk.
Insurance: Buyer arranges own insurance if desired.
Import clearance: Buyer arranges & pays for import clearance, duties, taxes at destination.
Final delivery: Buyer unloads at destination.

Common CFR Mistakes to Avoid

Using CFR for air/road/rail shipments — mode mismatch invalidates the term.
Not naming the precise place/port — "CFR China" is invalid; use "CFR Shanghai" or "CFR Guangzhou".
Assuming insurance is included when it's not — only CIP and CIF include seller-procured insurance.
Confusing risk transfer with cost transfer — they happen at different points in C-terms.
Missing "Incoterms® 2020" in contract — without edition, old 2010 rules may apply.

local_shippingCarrier Implementation Notes for CFR

local_shippingFedEx

• Terms of Sale field: CFR + named place
• Freight prepaid — seller provides carrier docs
• Insurance: buyer's responsibility
• Ocean AWB / Bill of Lading required

inventory_2UPS

• Terms of Sale field: CFR + named place
• Freight prepaid — seller provides carrier docs
• Insurance: buyer's responsibility
• Ocean AWB / Bill of Lading required

deployed_codeDHL

• Terms of Sale field: CFR + named place
• Freight prepaid — seller provides carrier docs
• Insurance: buyer's responsibility
• Ocean AWB / Bill of Lading required

downloadFree: Incoterms® 2020 Cheat Sheet (PDF)

One-page reference: all 11 terms, risk transfer points, cost matrix, when to use each. Perfect for your desk or forwarding team.

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