CFR— Cost and Freight(Tiền hàng và cước)

Delivery & risk transfer

Delivery (and risk transfer) happens at the LOADING port when the goods go on board — not at destination. The buyer should therefore insure the sea leg itself unless it wants to run that risk bare.

Cost split

The seller pays through to the destination port: origin costs, export clearance and ocean freight. Discharge costs at destination follow the carriage contract the seller signed — if freight includes discharge, the seller bears it with no recourse unless agreed otherwise. The buyer pays insurance (if any), import clearance and the inland leg.

Insurance

Neither party is obliged to insure — whoever bears the transit risk should consider buying cover for that leg.

Watch out for

• Do not read 'seller pays freight to destination' as 'seller bears risk to destination' — the most common misreading of the C-group. Risk always transfers at the loading port.
• Neither party must insure: since the buyer runs the sea-leg risk it should buy cover itself, or switch to CIF so the seller must provide minimum cover.
• For containers use CPT instead of CFR (the box is handed to the carrier at the yard before loading).