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Cost and Freight
Group C · Main carriage paid · Sea & inland waterway only
The seller delivers on board the vessel at the port of shipment and must contract and pay for carriage to the named port of destination. Risk, however, transfers on board at origin.
Where risk transfers
On board the vessel at the port of shipment — not at the destination port.
Seller's cost & riskBuyer's cost & risk
Seller pays
- ▪Packaging
- ▪Export clearance
- ▪Loading
- ▪Ocean freight to named destination port
Buyer pays
- ▪Insurance
- ▪Discharge (unless in freight contract)
- ▪Import clearance and duties
Insurance
No obligation. The buyer bears transit risk despite not holding the freight contract.
Customs
Export clearance: Seller
Import clearance: Buyer
Use it when
Commodity trades on conventional vessels where the seller has strong freight rates.
Watch out
Two ports are named in a CFR contract — shipment and destination. Getting them mixed up rewrites the risk line.