what is cost and freight cfr 
cost and freight cfr is a legal term used in foreign trade contracts in a contract specifying that a sale is cost and freight the seller is required to arrange for the carriage of goods by sea to a port of destination and provide the buyer with the documents necessary to obtain them from the carrier with a cost and freight sale the seller is not responsible for procuring marine insurance against the risk of loss or damage to the cargo during transit cost and freight is a term used strictly for cargo transported by sea or inland waterways 1cost and freight used to be abbreviated as c f then in 1990 it was changed to cfr by incoterms a set of commercial trade rules established by the international chamber of commerce icc after users complained of difficulties adding the ampersand symbol in telex messages and other technology used in the 1970s and 1980s 23investopedia hilary allisonunderstanding cost and freight cfr contracts involving international transportation often contain abbreviated trade terms that describe matters such as the time and place of delivery payment the conditions under which the risk of loss shifts from the seller to the buyer and specifying the party responsible for the costs of freight and insurance if a buyer and a seller agree to include cost and freight in their transaction the seller must arrange and pay for transporting the cargo to a specified port the seller must deliver the goods clear them for export and load them onto the transport ship the risk of loss or damage transfers to the buyer once the seller loads the items onto the vessel but before the main transportation occurs this provision means that the seller is not responsible for securing insurance for the cargo for loss or damage during transportation 3cost and freight is an international commercial term also called an incoterm to facilitate foreign trade the icc publishes and regularly updates this set of globally recognized terms that help to create a standard for the terms of foreign trade contracts 4 incoterms are intended to prevent confusion by clarifying the obligations of buyers and sellers such as transport and export clearance obligations and the physical point where risk transfers from the seller to the buyer 