CFR - COST AND FREIGHT (... named port of destination)
- COST AND FREIGHT means the seller must pay the costs and freight necessary to bring the goods to the named port of destination.
- The risk of loss or of damage to the goods, as well as any additional costs due to events occurring after the time the goods have been delivered on board the vessel, is transferred from the seller to the buyer when the goods pass the ship's rail in the port of shipment.
- If the buyer does not insure the shipment and if the goods are damaged, you may run the risk of not being paid.
- COST AND FREIGHT requires the seller to clear the goods for export.
- COST AND FREIGHT can only be used for sea or inland waterway transport.
- In the case of roll-on/roll-off or container traffic, the ship's rail serves no practical purpose.
© 2004 John Michael Pierobon