Context is: trade term. An international commercial term (Incoterm) meaning "cost and freight." The term is used in international sales contracts to signify that the seller must pay the cost and freight necessary to bring goods to a port of destination, but that the risk of loss or damage passes from the seller to the buyer when the goods pass the ship's rail in the port of shipment. Because a CFR selling price includes the cost of the goods and freight but not the cost of insurance, this term of sale is often used when the government in an importing country requires that insurance be supplied by a company subject to its jurisdiction. Prior to the 1990 version of the Incoterms, C&F was used instead of CFR, with the same meaning. See also CIF; CIP; CPT; DAF; DDP; DDU; DEQ; DES; EXW; FAS; FCA; FOB; Incoterms.
This is an INCO term and explains what the price quoted represents and the responsibility of the buyer and seller in relation to arranging for the various costs associated (e.g. insurance, freight, duties) with the shipment.
A Term of Sale where the seller pays the costs and freight necessary to bring the goods to the named port of destination, Terms of Sale but the risk of loss of or damage to the goods, as (continued) well as any additional costs due to events occurring after the time the goods have been delivered on board the vessel, is transferred from the seller to the buyer when the goods pass the ship's rail in the port of shipment. The CFR term requires the seller to clear the goods for export.