what is cfr in shipping

CFR in shipping stands for "Cost and Freight." It is an Incoterm that describes an arrangement where the seller is responsible for clearing the goods for export, delivering them onboard the vessel at the port of origin, and paying for the main carriage to the port of destination. Once the goods are on board the vessel, the risk transfers to the buyer, but the buyer is not financially responsible until the goods are unloaded from the ship at the destination. The buyer is also responsible for all additional transport costs from the destination port as well as import clearance and duties. CFR is used only for non-containerized ocean or inland waterway transportation, and the seller is not responsible for purchasing insurance under these Incoterms. If the buyer requires the seller to purchase insurance for the goods, CIF (Cost, Insurance, and Freight) should be considered.