CFR
Category: Incoterms
Definition (plain English)
Cost and Freight means the seller pays main freight to the named destination port, but insurance and most destination-side import costs are usually buyer-side.
Why it matters commercially
CFR can hide freight cost inside the supplier quote while leaving the buyer exposed to insurance decisions, destination charges, customs, and inland delivery.
Example
A buyer compared CFR and CIF offers by adding separate cargo insurance to the CFR quote and checking both quotes against the same destination charge sheet.
Common mistake
Accepting CFR without pricing cargo insurance, destination handling, duty, VAT, and the point where risk transfers away from the seller.
Use this in CommerceKit
Landed Cost
Use tool →Freight Cost Per Unit Calculator
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