CFR (Cost and Freight)

Published by:
Netherlands Chamber of Commerce, KVK
< 1 min read
Incoterms CFR
Incoterms CFR

CFR is an appropriate Incoterms® rule for transport of bulk and general cargo by water. The transfer of costs and risk takes place at different times.

Seller arranges and pays for:

  • All transport up to agreed port of destination.
  • Export formalities and export documents.

Buyer arranges and pays for:

  • Unloading at port of destination, if nothing else was agreed in the contract of carriage.
  • Transport from the agreed port of destination to final destination.
  • Import formalities and local import documents.

Suitable for:

  • Trade within and outside the EU.
  • Transport of bulk and general cargo by ship.
  • Payment via Letter of Credit or documentary collection.

Not or less suitable for:

  • Container transport, as the containers cannot be opened to check whether the seller has delivered correctly.
  • Transport by air, road, or rail.

Transfer of risk from seller to buyer:

  • Once seller delivers the goods on board the vessel at departure port, as with FOB. Buyer carries risk during sea transport.

Points of attention:

  • Only intended for transport by water.
  • The transfer of costs (port of arrival) and risk (port of departure) take place at different times.
  • Agree upon the exact location at the port of destination.

Read more about CFR.

Questions relating to this article?

Please contact the Netherlands Chamber of Commerce, KVK

CFR (Cost and Freight) | Business.gov.nl