CFR - Cost and FreightBack to Logistics Insight Hub index
Business quick take
- CFR: Cost and Freight is an Incoterm used in international trade, where the seller is responsible for delivering goods to the named port of destination.
- Under CFR terms, the seller covers the cost of transportation to the named port, but the risk transfers to the buyer upon loading the goods onto the vessel.
- Consider using CFR when you want to make goods available for transportation by sea to a specified port of destination.
- CFR is commonly used for maritime shipments and is suitable when the buyer is comfortable assuming risk after loading.
- Clearly define the named port of destination where the seller's responsibility ends and the buyer's risk begins.
- Understand that under CFR terms, the seller's obligations primarily cover transportation costs to the port of destination.
- CFR is frequently used for bulk cargo and containerized goods transported by sea.
- Sellers often collaborate with shipping companies to ensure the goods are safely loaded onto the vessel for transportation to the named port.
CFR is a practical choice for international maritime transactions, allowing sellers to deliver goods to the named port of destination, while buyers take on the risk once the goods are loaded onto the vessel.
CFR: Cost and Freight is an internationally recognized Incoterm used in international trade. Under CFR terms, the seller is responsible for delivering goods to the named port of destination. This Incoterm is commonly employed in maritime trade.
- CFR is a valuable Incoterm when you want to arrange the transportation of goods to a specified port of destination by sea. The seller covers the cost of transportation to the named port.
- CFR can be used for various modes of transport, but it is primarily applied to maritime shipments.
- Named Port of Destination: Specify the exact port where the goods should be delivered. This location marks the point where the seller's responsibility ends, and the buyer's responsibility begins.
- Risk Transfer: Understand that under CFR terms, the risk transfers from the seller to the buyer once the goods are loaded onto the vessel at the port of origin.
- CFR is a popular choice for businesses involved in maritime trade, especially for bulk cargo and containerized goods. It provides a straightforward way to handle the transportation of goods by sea.
- Sellers often collaborate with shipping companies and port authorities to ensure that the goods are loaded onto the vessel safely and in compliance with CFR terms.
Terminal49, while primarily focused on container movement data, indirectly supports the implementation of CFR through its data-driven capabilities:
- Container Tracking: Terminal49 offers real-time tracking of containers, enabling both buyers and sellers to monitor the progress of goods from the point of origin to the named port of destination. This visibility ensures that you can track the shipment's journey and confirm loading onto the vessel.
- Data-Driven Decision Making: Terminal49's data insights can inform your decision-making processes. By analyzing container movement data, you can optimize your logistics and transportation strategies, ensuring that your shipments under CFR are efficient and cost-effective.
- Appointment Scheduling: Coordinating appointments for container pick-up, transportation to the port, and loading onto the vessel is crucial when adhering to CFR terms. Terminal49 provides tools for appointment scheduling, helping you manage these critical logistics tasks efficiently.
- Supply Chain Visibility: Terminal49's platform offers comprehensive supply chain visibility, allowing you to track the movement of containers to the named port of destination. Having clear visibility aligns with the transparency goals of CFR, where responsibilities and costs are well-defined.