CFR, or Cost and Freight, is an Incoterm for ocean shipments where the seller pays the cost of the goods and the freight to the named destination port. Risk passes to the buyer once the goods are on board the vessel at origin, even though the seller is still paying for the main carriage. The difference from CIF is insurance: under CFR the seller does not buy marine cover, so the buyer arranges its own insurance for the voyage.
CFR suits buyers who carry their own cargo insurance and want the seller to book the ocean leg. It contrasts with CIF, where the seller also insures, and with FOB, where the buyer books the freight. Texas International Freight handles CFR moves and explains the shipping terms before you book.
