CNF (CFR) – Cost and Freight (named port of destination)
Explained
In CFR the seller delivers when the goods are on board and cleared for export. The seller pays for freight to transport the goods until the final port of destination. However, the risk transfer occurs when goods are on board.
This term is used in ocean and inland waterway transportation. The contract must specify the exact port of discharge, whereas the port of loading is optional. The risk and delivery happens at the port of loading. The seller covers the cost of freight until port of discharge. The buyer covers discharge and import clearance cost.
