Search results
30 wrz 2022 · Cost and freight (CFR) is a legal term used in foreign trade contracts. In a contract specifying that a sale is cost and freight, the seller is required to arrange for the carriage of goods...
21 sie 2024 · Under CFR, the seller must arrange (or procure in the case of a string-sale) a contract for the carriage of the goods from the agreed point of delivery in A2 to the named port of destination or, if agreed, to any point (quay or wharf) in that port.
In CFR the seller delivers when the goods are on board and cleared for export. The seller pays for freight to transport the goods until the final port of destination. However, the risk transfer occurs when goods are on board. This term is used in ocean and inland waterway transportation.
CFR Incoterms rule benefits buyers (importers) who prefer suppliers (exporters) to arrange and pay for sea transport to a designated port. Under CFR, suppliers cover the cost and freight to the named port, but the risk transfers to the buyer once the goods are on board the vessel.
CFR, which stands for "Cost and Freight," is a vital Incoterm that plays a significant role in determining responsibilities and costs in international shipping. This comprehensive guide will delve deep into the world of CFR Incoterms, exploring its meaning, application, and importance in global trade.
Example of shipping under CFR Incoterm. An Irish company sells 100,000 units of merchandise under the CFR shipping term to a US company. The seller packs, delivers the goods onboard the ship and clears them for export. The Irish company arranges transport with a freight forwarder and pays for the shipping until the port of destination in the US.
CFR stands for ‘Cost and Freight’. The seller is responsible for the organisation and costs of transport to the named port of destination. The CFR Incoterm is suitable for sea transport or inland waterway transport where general cargo or bulk goods are shipped.
