Cost and Freight

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Cost and Freight (CFR)

Seller is responsible for the payment of freight to carry goods to a named destination, as agreed with the buyer. This should be used with ocean shipments only, as the point where risk and responsibility pass from seller to buyer is the rail of the carrying vessel.

Cost and Freight

A CPT involving ocean freight. In a CFR, the seller is responsible for paying for shipping, while the buyer is responsible for transportation risk as soon as the good or product is loaded onto the ship. Legally, risk transfers when the good or product crosses the outer rail of the ship. See also: Incoterm.

cost and freight (c&f)

a term used to denote the respective contractual obligations of sellers and buyers of a GOOD which is exported. Under a c&f contract, the seller pays the cost of transporting the good to the port of shipment, the loading charges and the freight charges to the port of destination. From then on the buyer bears the cost of unloading and transporting the good to its final destination. The buyer pays all the insurance costs incurred.