CFR Incoterm (Cost and Freight) — Risk & Cost Split

CFR — Cost and Freight (Incoterms 2020) What CFR means. CFR stands for Cost and Freight. The seller pays freight to the destination port but risk passes on loading. Risk and cost are separate questions. Incoterms allocate cost and risk independently, and the point where risk transfers is often not the point where the seller stops paying. Disputes usually arise from assuming the two move together, or from using a maritime term for containerised cargo handed over at a terminal rather than loaded across the ship's rail. Getting the term right. Frequently Asked Questions. Estimate landed cost under this term.

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