Abbriviation :  CFR

Term :  Cost and Freight (named port of destination)

Description :  A sales arrangement in which a seller quotes a price for goods that includes the cost of transportation to a named port of destination. The CFR term requires the seller to clear the goods for export, but the risk of loss of or damage to the goods due to events occuring after the time the goods have been put on board the vessel is transferred from the seller to the buyer when the goods pass the ship's rail in the port of shipment. The cost of insurance is left to the buyer's account CFR is used for ocean shipments only.