Cost and Freight (CFR) Meaning in Shipping

Cost and Freight (CFR) is an international trade rule where the seller pays the ocean transport cost to the destination port, but risk shifts to the buyer once the goods are loaded on the ship. Put simply: seller pays, buyer carries the risk after loading.

When to use CFR and why it helps

Use CFR for bulk or break-bulk goods moving by sea when you want the seller to book the vessel and cover the main transport charges. The split is straightforward: the seller handles export steps and pays up to the destination port; the buyer typically covers insurance, import steps, and onward transport.

It’s not a substitute for a full contract. Write down the loading window, required documents, and who pays port handling so you don’t get surprise fees. For containerized moves, many teams choose another rule that matches handoff at the terminal.

How Transportify fits into your international moves

Once the shipment arrives, Transportify can handle local pickup and delivery to your facility. You can schedule trucks, share clear instructions, and get delivery confirmation—helpful when you’re coordinating suppliers and deadlines.

Related Terms

Ex Works

Cost, Insurance, and Freight

Carriage Paid To

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Noel Abelardo
Deputy Country Director