Complete Guide to CFR Terms in International Trade: Everything You Need to Know
With CFR (Cost and Freight) terms, the seller moves the goods to the port of destination and gives them to the buyer once they are on the ship at the start port. Using CFR terms successfully involves managing the timing of risk, getting proper insurance, keeping good records and having clear information about each port. Sellers need to take care of transferring the cargo and paying freight while ensuring that the seller loads the goods properly, and buyers need to complete import paperwork and assume possible losses in transit. This is why CFR is favored by skilled traders who want efficient and affordable shipping transportation costs.