What is Cost and Freight (CFR Incoterms)?
Cost and Freight (CFR) meaning
CFR is an Incoterms rule and a legal agreement that states that the seller is responsible for shipping goods by sea to the buyer's chosen destination port. Here, the seller pays the costs and provides the required documentation for the buyer to collect the goods.
Compared to Free on Board (FOB) shipping, CFR shipping requires the shipping party to take on more transportation and cost responsibilities.
What is the difference between CFR and CIF (Cost, Insurance and Freight)?
Both CFR and CIF involve the seller arranging the sea carriage of goods to the destination port. However, CIF requires the seller to purchase insurance for the cargo until it reaches the port of destination.
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