Cost and Freight

Definition

An Incoterm (2020) applicable only to sea and inland waterway transport where the seller pays the costs and freight to bring the goods to the port of destination, but risk transfers to the buyer when the goods are loaded on board the vessel at the port of shipment. CFR differs from CIF in that the seller is not required to provide insurance. Like FOB and CIF, CFR is not applicable to air freight — CPT is the air/multimodal equivalent where the seller pays carriage without insurance obligation.