CFR (Cost and Freight)
Definition
CFR is an Incoterms rule under which the seller pays the costs and freight needed to bring goods to the named port of destination, but risk transfers to the buyer once the goods are loaded on board the vessel at the port of origin.
Why It Matters
CFR clarifies who pays for freight versus who bears risk during sea transit — these are not the same thing, and confusing them is a common source of disputes.
Example
A contract quoted as 'CFR Jebel Ali' means the seller arranges and pays freight to Jebel Ali port, but risk passed at the origin port.
Relevant Authority / Source
International Chamber of Commerce (ICC)