CFR (Cost and Freight)
An Incoterm that represents an exporter’s obligation to pay for the cost of transport to the port of destination. The buyer pays for the insurance and transportation of the goods from the port of destination to its factory. The passing of title (ownership and risk) occurs when the goods pass the ship’s rail at the port of shipment, which means that this term cannot be used for airfreight or land transport and also is inappropriate for most containerised sea shipments (the Incoterm CPT is the appropriate one for these).