Maritime Incoterm where seller contracts freight to destination port, but risk transfers upon loading at origin.
Cost and Freight (CFR) requires the seller to deliver goods on board the vessel and pay freight costs to bring goods to the named port of destination. Risk of loss or damage transfers to the buyer as soon as the goods are loaded on board at the origin port.
Governs maritime transport freight settlement and risk allocation between ocean carriers and international cargo buyers.
Splits cost milestone (destination discharge) from liability transfer milestone (origin vessel loading).
Not suitable for multimodal road-to-sea container transport without ocean carrier direct bill of lading.