In Incoterms, CFR trade term means Cost and Freight
When is Delivery Completed?
Seller delivers the goods on board the vessel or procure the goods already so delivered.
What is Seller’s Obligation?
Seller must pay costs and freight to bring goods to named port of destination. Seller is required to clear goods for export, where applicable.
When does Buyer Risk and Obligation start?
Risk of loss or damage to goods passes to the buyer when the goods are on board the vessel.
Neither party is responsible for insurance. (However, in LC transaction, the buyer is required by his bank to arrange for insurance).