ICC Incoterms 2020 - International Commercial Terms CFR: Cost and Freight (insert named port of destination)

What does CFR require?

Delivery happens when the seller puts the goods aboard the ship, or buys goods already shipped that way; risk passes at that moment at the port of shipment, so the seller has done its part whether or not the goods ever arrive. Even so, the seller must book and pay freight to the destination port named in the term, or to the agreed spot within it, and supply at its own expense the usual transport document for that port, dated within the shipment period, which lets the buyer collect the goods from the carrier and, unless otherwise agreed, sell them while afloat by passing on the document (a full set of negotiable originals where they are issued). Two ports are relevant: the port of shipment should be named if the buyer cares where risk passes, and where a feeder vessel and an ocean vessel are both used, risk passes on handover to the first carrier unless the contract provides otherwise. The seller handles export clearance only, and unloading costs at destination under its carriage contract cannot be charged separately to the buyer. No insurance is owed by the seller, so the buyer would be wise to arrange cover. For multimodal carriage or handover at a container terminal, CPT is the rule to use.