Incoterms® 2020 Rules—CFR Cost and freight

The following Commercial practice note provides comprehensive and up to date legal information covering:

  • Incoterms® 2020 Rules—CFR Cost and freight
  • Explanatory notes for users
  • 1. Delivery and risk
  • 2. Mode of transport
  • 3. ‘or procuring the goods so delivered’
  • 4. Ports of delivery and destination
  • 5. Must the shipment port be named?
  • 6. Identifying the destination point at the discharge port
  • 7. Multiple carriers
  • 8. Unloading costs
  • More...

Incoterms® 2020 Rules—CFR Cost and freight

This Practice Note comprises the guidance note to the CFR Cost and freight Incoterm in the Incoterms® 2020 rules, produced here with the permission of ICC Publishing SA. Incoterms® 2020 rules and other ICC publications are available from ICC Publishing SA, 33-43 avenue du Président Wilson, 75116 Paris, France and from ICC United Kingdom, 1st Floor, 1-3 Staple Inn London, WC1V 7QH, United Kingdom, and

Incoterms® 2020 rules came into force on 1 January 2020, and updated the Incoterms® 2010 rules to reflect changes to the market over the last decade. For the CFR Incoterm valid up until that date, see Practice Note: Incoterms® 2010 Rules—CFR Cost and freight.

CFR (insert named port of destination) Incoterms® 2020

Explanatory notes for users

1. Delivery and risk

‘Cost and Freight’ means that the seller delivers the goods to the buyer

  1. on board the vessel

  2. or procures the goods already so delivered.

The risk of loss of or damage to the goods transfers when the goods are on board the vessel, such that the seller is taken to have performed its obligation to deliver the goods whether or not the goods actually arrive at their destination in sound condition, in the stated quantity or, indeed, at all. In CFR, the seller owes no obligation to the buyer to purchase insurance cover: the buyer would be well-advised

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