What Is CFR In Shipping

Publié par FBASZ

The seller is liable and responsible for all the steps in their country up to the point the goods are loaded on board the vessel and is also responsible – but not liable – for the main carriage. Once the goods are loaded onto the vessel, the responsibility shifts to the buyer. The buyer becomes liable for the main carriage and assumes responsibility for the shipment’s safety and compliance until it reaches the final destination.

The full name of CFR is Cost and Freight, which means cost plus freight. CFR means that the seller completes its delivery obligation when the goods cross the ship’s rail at the port of shipment. Costs in the Period – The freight and charges required to transport the goods to the named port of destination must be paid by the seller, but the risk of loss of or damage to the goods after delivery, and any additional costs due to various events, are borne by the seller Transfer to buyer.

The seller must issue a shipping notice to the buyer after the shipment is completed. In the CFR contract, the buyer must insure himself, so the seller must provide the buyer with sufficient notice of shipment (i.e., no delay in notification time; the content is detailed and can satisfy the buyer’s requirements). The need to take necessary measures to receive the goods at the destination)

Otherwise, the seller shall be responsible for the loss caused by the buyer’s failure to insure the freight insurance. In order to avoid the company suffering losses, the buyer must promptly apply for insurance with the insurance company before the goods are loaded on the ship. Otherwise, all losses will be borne by the buyer alone. Please note that Yes, this trade term only applies to sea transport and inland waterway transport