CFR (Cost and Freight)
A sea-only Incoterm where the seller pays ocean freight to the destination port, but risk passes to the buyer once goods are on board.
TL;DR: CFR means the seller pays for ocean freight to your destination port, but risk passes to you as soon as the goods are loaded on the ship in the origin country. CFR is also written C&F or CNF.
CFR is only for sea and inland waterway transport. The seller clears the goods for export, books the vessel, and pays freight to the named destination port, such as “CFR Rotterdam.” The buyer handles unloading costs not included in the freight contract, import clearance, duties and delivery onward.
The key point is the split between cost and risk. The seller pays freight to your port, yet any loss or damage during the ocean voyage is your risk. CFR does not require the seller to buy insurance. If you buy on CFR, arrange your own cargo insurance from the loading date.
This matters for heavy, fragile goods such as mosaic tile sheets on crates or pallets. Breakage in rough seas or during transshipment is a real risk, and without your own policy you may have little recovery.
Also check destination charges. Under CFR, the seller chooses the shipping line, and some low freight quotes are balanced by high destination fees that the buyer pays on arrival. Ask for an estimate of local charges at your port.
CFR is similar to CIF, except that under CIF the seller also buys minimum insurance. For container cargo, CPT is often a better fit. Compare with CIF, CPT and FOB.